In April 2013 the S&P 500 Weeklys (SPXW) options established another record high of 219,921 contracts for the average daily volume in a month. This was the fourth time in the past seven months that the SPX Weeklys established a new monthly volume record. The SPXW average daily volume in April 2013 was 185% higher than the SPXW average daily volume in April 2012.
Weeklys options can provide opportunities for investors to implement more targeted buying, selling or spreading strategies.
SPX Weeklys are traded on CBOE and quotes can be found in SPX options chains under root symbol SPXW. SPX Weeklys are PM-settled on the last trading day, typically a Friday. As with other PM-settled index options, the exercise-settlement value is calculated using the last (closing) reported sales price in the primary market of each component stock. On the last trading day, trading in expiring SPX Weeklys closes at 3:00 p.m. (Chicago time). All non-expiring SPX Weeklys continue to trade until 3:15 p.m. (Chicago time).
Key features of SPX Weeklys options –
> LARGE CONTRACT SIZE WITH A $100 MULTIPLIER (ten times larger than SPY options);
> EUROPEAN-STYLE EXERCISE.