$BXM Is Busted Like $SVXY
From Macro-To-Micro Options Power Hour recorded on May 28, 2025
In this short clip from Macro-To-Micro Options Power Hour recorded on May 28, 2025, Samantha LaDuc and Hans Albrecht discuss why the BXM (CBOE BuyWrite Index), a tool used to gauge S&P performance via covered calls, has recently broken down and become less reliable.
They compare it to the SVXY, which also failed as a signal after the August 2024 VIX spike, highlighting how both were once useful indicators until extreme market moves distorted their performance.
Samantha explains that BXM’s underperformance is due to path dependency in covered call strategies—strong market rallies after selloffs cap upside gains, especially when the strategy cannot adapt.
They also emphasize that recent macro-driven policy interventions, like the April 9th pivot, have had a larger influence on markets than any technical signal
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