Eaton Vance Tuesday announced the launch of the Eaton Vance Option Absolute Return Strategy Fund, a fund that aims to deliver returns independent of the stock and bond markets and that is benchmarked against short-term cash instruments.

The fund will issue both puts and calls against the S&P 500 Composite Stock Price Index, taking advantage of volatility in the market. The fund will try to mitigate risk by selling options over a staggered timeframe. This options strategy will be used as an overlay to a portfolio of short-term, high-grade debt with a weighted average maturity of one year or less.

Parametric Risk Advisors, a subsidiary of Eaton Vance, will run the fund’s options program.

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