📝Positioning For Further UKX Upside Via Options: Barclays Strategy

Interestingly, as shown in Figure 15, UKX's relative outperformance (esp. vs the SPX) has historically been associated with the shift from Growth into Value stocks (likely owing to low Tech exposure in UKX). While, within the factor space, we do not have a clear preference for Value or Growth, continued shift into Value could provide a tailwind to UKX. Following the recent outperformance, we continue to like owning any further upside in UKX via risk limited option structures such as call spreads, especially given relatively low UKX vol and flat call skew. - Barclays Strategy