SPX Weeklys – New All-time Record Volume for Month and Day

The WeeklysSM options on the S&P 500 Index continue to set volume records:

(1)    Last month the SPX Weeklys established a new high of 239,747 average daily volume for the month, and

(2) On May 31st the SPX Weeklys options had an all-time record one-day volume of 425,270.

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DAILY CHARTS FROM MAY 8TH THROUGH JUNE 14TH

Three charts with daily data from May 8th through June 14th are shown below. The SPX Weeklys options set new one-day volume records on May 22nd (403,729 volume) and again on May 31st. Were there any market conditions (such as changes in volatility indexes) that stimulated the record volume days on SPX Weekly options?  Of course, many factors can influence demand for risk management tools such as the SPX Weeklys, but I would like to highlight a couple of charts on volatility indexes.  The CBOE/CBOT 10-year U.S. Treasury Note Volatility Index (VXTYN) rose 64% from May 8th to May 31st.  The CBOE Volatility Index® (VIX®) rose 12.2% on May 31st, its biggest one-day rise (in % terms) since mid-April (the VIX rose 18.3% on April 17 and 43.2% on April 15th).

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BACKGROUND ON WEEKLYS OPTIONS

Weeklys options, first introduced by CBOE in 2005, are options that expire at the end of a week, unless an options expiration already exists.  Responding to requests from institutional investors, in May 2012 CBOE began extending the listings of SPX Weeklys and maintaining five consecutive expiration weeks available for trading options on the S&P 500. 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. Weeklys options can provide opportunities for investors to implement more targeted buying, selling or spreading strategies. Weeklys options can help investors efficiently take advantage of market events, such as earnings, government reports and Fed announcements.

To learn more about SPX Weeklys options, please visit www.cboe.com/SPXW.