Beginning Tuesday, February 23, CBOE will list for trading weekly options on the S&P 500 Index which expire on Wednesdays (“SPX Wednesday Weeklys”). Like other SPXW options, SPX Wednesday Weeklys are series of the SPX option class.
Key features of the SPX Wednesday Weeklys include –
- SPX Wednesday Weeklys may expire on any Wednesday of the month, other than a Wednesday that coincides with an End-of-Month (“EOM”) expiration date.
- SPX Wednesday Weeklys are PM-settled; that is, their exercise settlement value is based on the closing level of the S&P 500 Index on the day the options expire.
- SPX Wednesday Weeklys series will be available for trading under option symbol SPXW.
- Initially, SPX Wednesday Weeklys series with March 2, 2016 and March 9, 2016 expiration dates will be listed. SPX Wednesday Weeklys expirations will typically be listed to begin trading on Tuesdays at least one week prior to their expiration date.
- SPX Wednesday Weeklys will cease trading at 3:00 p.m. Central time on their expiration date. All nonexpiring SPX Wednesday Weekly options will continue to trade until 3:15 p.m. Central time.
- SPX Wednesday Weeklys are cash-settled, have European-style exercise and have a $100 multiplier.
- Margin, including customer portfolio margin requirements, are the same as those that apply to other SPX options. Please refer to CBOE Rules 12.3 and 12.4 for more information.
GROWTH IN VOLUME FOR SPX WEEKLYS OPTIONS
During the past decade CBOE has listed SPX Weeklys options (SPXW) that expire at the end of the day each Friday (PM settled) — as opposed to the standard third Friday of the month expirations. SPX Weeklys options provide opportunities to pinpoint more targeted buying, selling or spreading strategies and can help investors take advantage of market news and events. Average daily volume for SPX Weeklys options grew from 15,133 in 2010 to 337,683 in 2015.