In February CBOE launched S&P 500® Index (SPX) Wednesday-expiring WeeklysSM options. Last month the average daily volume for the “Wednesday Weeklys” rose to a record high of 72,957 contracts.
In the February press release CBOE Holdings CEO Edward T. Tilly said –
“We are pleased to further expand our SPX product complex with the introduction of SPX Weeklys with Wednesday expirations. Wednesday Weeklys, in addition to end-of-the-week expirations, will increase opportunities to trade SPX and enable investors to better target specific expirations. Wednesday Weeklys will align with VIX Weeklys futures and options, which also expire on Wednesdays, to provide greater trading flexibility for the increasing number of customers who use both our SPX and VIX product suites.”
OVERVIEW OF S&P 500 OPTIONS AT CBOE
A shown in the table below, CBOE offers a variety of S&P 500 options products..
A key factor when considering SPX “Wednesday Weeklys” and SPX options with other expirations is the term structure – how does the implied volatility vary at different maturities? On the morning of May 6, the term structure chart at www.cboe.com/VIXTerm showed implied volatilities that ranged from around 15.9 to about 23.
To learn more about SPX options, please visit www.cboe.com/SPX