Ask the Institute

Ask the Institute Archive

DATE: February 25, 2013

QUESTION:

Can you tell me about the Mini Options which are expected to launch on all US exchanges beginning Monday, March 18, 2013?

ANSWER:
Some of the most actively traded and highest-priced stocks, including Apple, Amazon, Google as well as Gold and Spyder ETFs, are set to unveil Mini Options which will trade concurrently with standard options. The key difference between the standard options and Minis will be their multiplier. Equity options traded on U.S. Exchanges typically have a multiplier of 100. In contrast, Mini Options are slated to have a multiplier of 10. These Mini Options are intended to provide a more affordable alternative to investors interested in implementing options strategies on high-priced stocks. To learn more about Mini Options, view this week's segment of "Ask the Institute."

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