New S&P 500 End-of-Month Options to Launch in July

On July 7 CBOE plans to add new S&P 500® End-of-Month Options to its SPX options product line in response to requests from asset managers who want to more precisely match SPX option expirations to end-of-month fund cycles and fund performance periods.

CBOE Holdings CEO Edward T. Tilly noted “End-of-Month options represent another dimension to our extensive S&P 500 Index options complex, which includes our flagship SPX contract, SPX End-of-Week, SPX End-of-Quarter and SPX LEAPSâ contracts. Each of these products is tailored to respond to the unique needs of different types of investors looking to trade the S&P 500 Index to better manage their portfolios.”

New PM-settled S&P 500 End-of-Month Option Series 

Effective July 7, 2014, CBOE will begin trading new S&P 500® End-of-Month option series.  These options will trade on the Hybrid trading platform under the SPXW options root ticker symbol, expire on the last trading day of the applicable month, and be PM-settled.  Contract specifications, a CBOE Circular, and more information are available at www.cboe.com/EOM.

Symbol Change for S&P 500 End-Of-Quarter Options

Effective July 3, 2014, the option root ticker symbol for S&P 500 End-of-Quarter options will change from SPXQ to SPXW and will trade on the Hybrid platform.  Any open GTC orders in SPXQ will be cancelled by the Exchange after the close of business on July 2, 2014.  Upon completion of this symbol change, the SPXW symbol will include both End-of-Week and End-of-Quarter PM-settled option series.

COMPARING KEY SPX PRODUCT SPECIFICATIONS

Below is a table comparing key specifications for some of CBOE’s SPX product line; please visit www.cboe.com/SPX for more specifications.111SPX Specs May 29

GROWTH IN TRADING VOLUME FOR S&P 500 END-OF-WEEK OPTIONS

The trading volume for S&P 500 End-of-Week Options has grown in every calendar year since 2008, as these options can provide opportunities for investors to implement more targeted buying, selling or spreading strategies.  The average daily volume for S&P 500 End-of-Week options rose 360% from 2011 to Jan.-Apr. 2014.

The S&P 500 End-of-Quarter Options often have experienced more volume in the third month of the quarter (versus the first and second months).  It will be interesting to see the days on which the new S&P 500® End-of-Month Options will generate volume beginning on July 7.

222SPX EOM EOQ volume