A Once-Booming Options Strategy on Wall Street Is Misfiring
- Russell Investments liquidates strategic call overwriting fund
- Critics say the approach got too popular for its own good
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The shuttering of a $75 million fund this week by Russell Investments will have bypassed many investors, but its demise is the latest sign of trouble for a once-hot Wall Street derivatives strategy.
The Seattle-based investment firm is liquidating a fund that follows what’s known as call overwriting, an options-selling strategy that critics warn may have become too popular for its own good.