Standard & Poor's Launches S&P GSCI Covered Call Select Index

Oct 07, 2010, 10:00 ET from Standard & Poor's

NEW YORK, Oct. 7 /PRNewswire/ -- Standard & Poor's, the world's leading index provider, announced today the launch of the S&P GSCI Covered Call Select Index. The S&P GSCI Covered Call Select Index seeks to simulate a covered call strategy on those commodities, within the S&P GSCI, that have active options markets.  

"The S&P GSCI Covered Call Select Index is part of the next generation of the S&P GSCI family of indices," says Michael G. McGlone, Senior Director of Commodity Indexing at S&P Indices. "It is designed to target lower volatility exposure to commodities, alleviate some of the potential drag on returns from rolling into contango, and seek potential income in a very low fixed rate income environment."

There are ten commodities included in the 2010 S&P GSCI Covered Call Select Index: Coffee, Corn, Cotton, Crude Oil, Gold, Natural Gas, Silver, Soybeans, Sugar, and Wheat.  For each commodity, a separate covered call index is created reflecting an investment in the rolling active futures contract and the systematic writing (selling) of out-of-the-money (OTM) calls on the same contract.  The ten individual covered call indices are then included in a composite covered call index on an equal-weighted basis.

For complete eligibility criteria, as well as index calculation guidelines, please visit:

About S&P Indices

S&P Indices, the world's leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1.25 trillion is directly indexed to Standard & Poor's family of indices, which includes the S&P 500, the world's most followed stock market index, the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, the S&P Global BMI, an index with approximately 11,000 constituents, the S&P GSCI, the industry's most closely watched commodities index, and the S&P National AMT-Free Municipal Bond Index, the premier investable index for U.S. municipal bonds. For more information, please visit

About Standard & Poor's

Standard & Poor's, a subsidiary of The McGraw-Hill Companies (NYSE: MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With offices in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for 150 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit

SOURCE Standard & Poor's