FLEX Update: CFLEX AIM Launched Today, and SPX FLEX Has Open Interest in Years 2015 Thru 2021 by Matt McFarland and Matt Moran

In 1993 CBOE created and launched the first FLexible EXchange Options® (FLEX® Options), which are designed to provide important features such as:

 

  • The ability to customize key contract terms, like exercise prices, exercise styles and expiration dates
  • Virtual elimination of counter-party risk – guaranteed by The Options Clearing Corporation
  • Price discovery in competitive, transparent, auction markets
  • A secondary market for an opportunity to offset or alter positions before expiration
  • Independent daily valuation by OCC of prices
  • Availability of daily price and open interest reports
  • The opportunity to trade large size with expanded or eliminated position limits
  • Operational efficiencies of exchange-listed options

 

Many investors such as insurance companies and other institutional investors are very interested in hedging tools that can be customized with minimal counterparty risk. A Special Report by the National Association of Insurance Commissioners and the Center for Insurance Policy and Research found that insurance companies had more than $300 billion in exposure to instruments designed to hedge risk in the years 2015 to 2021 and beyond. http://www.naic.org/capital_markets_archive/110715.htm

CFLEX

CFLEX 2.0® on CBOE Command is CBOE’s new low-cost, internet-based FLEX® system. CFLEX® retains the existing advantages of exchange-traded FLEX options while providing a substantial improvement in operational efficiency. Connectivity to the system has been designed to be attractive and user friendly – a signed user agreement and internet accessible workstation are all that is required.

TODAY’S LAUNCH OF CFLEX AIM

CBOE launched CFLEX AIM today. AIM (Automated Improvement Mechanism) is CBOE’s paired order mechanism – it allows for simple, fast, efficient execution of customized option trades where liquidity providers commit capital to facilitate customer business. For market participants that are accustomed to OTC-style trading, CFLEX AIM makes the transition into FLEX virtually seamless. Over 1,000 SPX FLEX contracts traded today via CFLEX AIM. A video of AIM in action is available here: http://www.cboe.com/Institutional/CFLEXDemoVideo.aspx

SPX FLEX OPTIONS

S&P 500® (SPX) FLEX options now have open interest on more than 70 dates in the years from 2015 through 2021. 

SPX FLEX CALL OPTIONS WITH OPEN INTEREST THAT EXPIRE IN 2018 OR LATER

Below is information re: the SPX call options with open interest in the years 2018 through 2021.

Month Day Year Strike

Dec 22 2018 1193

Jan 4 2019 1525

Apr 29 2019 2243

Sep 3 2019 1224

Jul 21 2020 1073

Aug 19 2021 1911

SPX FLEX PUT OPTIONS WITH OPEN INTEREST THAT EXPIRE IN 2018 OR LATER

Month Day Year Strike

Dec 22 2018 1193

Dec 22 2018 1281

Jan 4 2019 1016

Sep 3 2019 1224

Sep 30 2019 1146

Dec 6 2019 1107

Jul 9 2020 1072

Jul 21 2020 1073

Nov 4 2020 1215

Dec 19 2020 1000

Aug 19 2021 674

Dec 18 2021 1281

LINKS TO MORE RESOURCES

 

Regards,

Matt Moran and Matt McFarland