The Company’s unique product line includes options on the stocks of over 2,400 companies, more than 250 Exchange Traded Funds (ETFs) and 10 broad- and narrow-based market indexes, as well as a roster of innovative specialty products and benchmarks.
Our index options complex features multi-listed products, such as the NASDAQ-100 (NDX) and Russell 2000 (RUT) Indexes, and premium products found only at our Company, chiefly, options on the Dow Jones Industrial Average (DJX), the S&P 100 (OEX) and the S&P 500 (SPX) Indexes.
Today, the S&P 500 Index stands as the premier broad-market indicator. The options based on the index provide a powerful and flexible tool that allows investors to synthetically adjust their positions to a 500-stock portfolio, making SPX options a leading portfolio risk management tool among institutional investors. SPX options have grown into our largest and most-actively traded contract, and during 2010, volume in this flagship product totaled 175.3 million contracts.
We have also engineered proprietary indexes and index methodologies, such as the CBOE Volatility Index (VIX), which anchors an entire suite of volatility products. VIX has emerged as the world’s most widely-followed market gauge of investor sentiment. The expansion of VIX options and futures trading and the ongoing developments in the volatility space represent exciting new opportunities, not only for CBOE and CFE, but for the entire financial industry.
For investors looking to invest outside of the parameters of the traditional monthly options cycles, we offer Weekly and Quarterly options. For lengthier perspectives, Long-term Equity AnticiPation Securities, or LEAPS—options contracts that extend up to three years—are available. We have also created a stable of useful benchmarks, such as the CBOE S&P 500 BuyWrite Index (BXM), to help investors track the performance of different options-based investment strategies that can add income, often with less volatility than a comparable stock index. Benchmarks such as the BXM are particularly useful in helping investors compare the long-term results of many benchmark indexes.
The Company’s multi-product platform caters to a diverse universe of market participants and myriad of investment objectives.
Total Options Volume 2010
By Product (1.1 billion contracts)
SPX Options Total Volume
CBOE Benchmark Index Performance
Percentage Change in 2010