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Active PutWrite Market Review – Q1 2021
Thursday, May 13, 2021

PutWrite Market Review Q1 2021

PutWrite Market Review Q1 2021

  • The U.S. equity market gyrated early in the first quarter of 2021 with nearly all of its return generated after March 4. Following January’s decline, the market advanced on positive-trending developments surrounding COVID-19 paired with growing prospects for additional fiscal stimulus. Over the second half of February, increasing concerns over rising interest rates and the outlook for inflation gripped investors and the market retreated. Congress passed a new economic stimulus package in early March and the market advanced through quarter-end.
  • The Cboe® Volatility Index® (the VIX®), averaged 23.20 in the first quarter of 2021. Average implied volatility was significantly higher than realized volatility, as measured by the standard deviation of daily returns for the S&P 500® Index, which was 15.86% for the quarter.
  • Gateway’s investment team focused on patiently earning index put option time premium from expiring contracts while adjusting select positions to maintain market exposure that is consistent with the Composite’s typical profile.
  • The Composite’s outperformance of the PUTSM in February nearly made up for underperformance in January and March. The Composite delivered better downside protection than the PUTSM during the market drawdown of February 12 through March 4 and outperformed the PUTSM from the beginning of February through quarter-end.

* The portfolio statistics reflected for the Composite are those measured by a representative account. This information represents supplemental information to the GIPS® Composite Report. This representative account was selected as it is the largest account in the Composite. Data as of March 31, 2021, unless noted otherwise. Past performance is not indicative of future results. Sources: Morningstar DirectSM and Bloomberg, L.P.




  • U.S. Market Recap
  • U.S. Market Perspective
  • Market Review
    • Active Overwrite Market Review – Q3 2021
    • Index/RA Market Review – Q3 2021
    • Active PutWrite Market Review – Q3 2021
    • Active PutWrite Market Review – Q2 2021
    • Active Overwrite Market Review – Q2 2021
    • Index/RA Market Review – Q2 2021
    • Active Overwrite Market Review – Q1 2021
    • Active PutWrite Market Review – Q1 2021
    • Index/RA Market Review – Q1 2021
  • Quick Takes
  • Flagship (Index/RA) Commentary
  • Active Overwrite Commentary
  • Active PutWrite Commentary



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Gateway Investment Advisers, LLC
312 Walnut Street, 35th Floor
Cincinnati, OH 45202-9834
Phone: 513-719-1100
Fax: 513-719-1199
Boston Location
888 Boylston Street, Suite 800
Boston, MA 02199

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