Options on Exchange Traded Notes (ETNs)
CBOE offers options on Exchange Traded Notes (ETNs). ETNs are the nonconvertible debt of an issuer that have a term of at least one year but not greater than thirty years. Despite the fact that ETNs are linked to at least one underlying index or asset ("Reference Asset"), each trade as a single, exchange-listed security.
As ETNs trade like stock (see ETN Specifications for details), options on these products are operationally similar to options on stock. Options on ETNs are physically settled and have an American-style exercise feature. LEAPS are offered on some of the products.
AMJ - The JPMorgan Alerian MLP Index ETN
BAL - iPath Dow Jones-UBS Cotton Subindex Total Return ETN
COW - iPath® Dow Jones-UBS Livestock Total Return Sub-Index ETN
DJP - iPath® Dow Jones-UBS Commodity Index Total Return ETN
GAZ - iPath Dow Jones-UBS Natural Gas Total Return Sub-Index ETN
GRU - ELEMENTS Linked to the MLCX Grains Index Total Return
INP - iPath MSCI India Index ETN
JJC - iPath Dow Jones-UBS Copper Total Return Sub-Index ETN
MLPN - Credit Suisse Cushing 30 MLP Index ETN
OIL - iPath S&P GSCI Crude Oil Total Return Index ETN
PTM - E-TRACS UBS Long Platinum ETN
RJA - ELEMENTS Linked to the Rogers International Commodity Index - Agriculture Total Return
RJI - ELEMENTS Linked to the Rogers International Commodity Index - Total Return
RJN - ELEMENTS Linked to the Rogers International Commodity Index - Energy Total Return
SGG - iPath Dow Jones-UBS Sugar Total Return Sub-IndexSM ETN
VIIX - VelocityShares VIX Short-Term ETN
VXX - iPath S&P 500® VIX® Short-Term Futures Index ETN
VXZ - iPath S&P 500 VIX Mid-Term Futures Index ETN
Options on Exchange Traded Notes (ETNs) Product Specifications
Underlying: Generally, 100 shares of one of the ETNs above.
Strike Price Intervals: Minimum strike price intervals of not less than 1 point are permissible if the strike price is equal to or less than $200. When the strike price exceeds $200, strike price intervals will be no less than 5 points.
Strike (Exercise) Prices: In-, at- and out-of-the-money strike prices are initially listed. New series generally will be added when the underlying shares trade through the highest or lowest strike price available.
Expiration Date: Saturday immediately following the third Friday of the expiration month until February 15, 2015. On and after February 15, 2015, the expiration date will be the third Friday of the expiration month.
Expiration Months: Generally, two near-term months and two months from a January, February or March quarterly cycle (e.g., March cycle - March, June, September and December). LEAPS may also be available.
Last Trading Day: Trading in Options on ETNs will ordinarily cease at the close on the business day (usually a Friday) preceding the expiration date.
Exercise Style: American - Options on ETNs generally may be exercised on any business day before the expiration date.
Settlement of Option Exercise: Physical Delivery. Exercise notices properly tendered on any business day will result in delivery of ETN shares on the third business day following exercise.
Margin: Uncovered writers must deposit 100% of the options proceeds plus 15% or 20% of the aggregate contract value (ETN price multiplied by $100) minus the amount by which the option is out-of-the-money, if any. Minimum margin is 100% of the option proceeds plus 10% of the aggregate contract value. Long puts or calls must be paid in full.
Position Limts: For position limits on Options on ETNs, visit the Options Clearing Corporation's web site.
Trading Hours for Options on ETNs:
Click here for trading hours for Options on ETNs.