618 Part V: Index Options and Future 
ly equal to that of the structured product would produce a position similar to a 101 
straddle. The reader is left to interpret and analyze other such strategies on his OWI 
LISTS OF STRUCTURED PRODUCTS 
The descriptions provided so far encompass the great majority of listed structure 
products. There are many similar ones involving individual stocks instead ofJndice 
(often called equity-linked notes). The concepts are the same; merely substitute 
stock price for an index price in the previous discussions in this chapter. 
Some large insurance companies offer similar products in the form of annuities 
They behave in exactly the same way as the products described above, except tha 
there is no continuous market for them. However, they still afford one the opportu­
nity to own an index fund with no risk Many of the insurance company products, in 
fact, pay interest to the annuity holder - something that most of the products listed 
on the stock exchanges do not. 
Both the CBOE and American Exchange Web sites (www.cboe.com and 
www.amex.com) contain details of the structured products listed on their respective 
exchanges. A sampling at the time of this writing showed the following breakdowns 
of listed structured products: 
Underlying Index Percent of Listed Products 
Broad-based index (S&P 500, e.g.) 23% 
Sector index 
Stocks 
43% 
34% 
If you browse those lists, an investor may find indices or stocks that are of particular 
interest to him. In addition, it may be possible to find ones trading at a substantial 
discount to cash settlement value, something a strategist might find attractive. 
PERCS 
Part II: Products Designed 
to Provide /,/Income" 
At the beginning of this chapter, it was stated that most listed structured products~ 
fall into one of two categories. The first category was the type of structured prod­
uct that resembled the ownership of a call option. The second portion, to be dis-