Options Based on Dow Jones Industrial Average (DJX)
Product Specifications
Symbol:
DJX
Index Description:
The Dow Jones Industrial Average is a price-weighted index composed of 30 of the largest, most liquid NYSE and NASDAQ listed stocks.
Underlying:
Options are based on 1/100th of the DJIASM level.
Index Components
Multiplier:
$100.
Premium Quote:
Stated in decimals. One point equals $100. Minimum tick for options trading below 3.00 is 0.01 ($1.00) and for all other series, 0.05 ($5.00).
Strike Prices:
Strike prices for options are set to bracket the index level in minimum increments of 1 point.
Expiration Cycle:
Generally, up to three near-term months plus up to 3 months on the March quarterly cycle.
Expiration Date:
Saturday following the third Friday of the expiration month.
Exercise Style:
European.
Last Trading Day:
Trading in DJX will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.
Settlement Type:
Cash-settled.
Settlement Value:
Calculated based on the opening prices of the component securities on the business day prior to expiration, usually a Friday. The exercise-settlement amount is equal to the difference between exercise-settlement value and the exercise price of the option, multiplied by $100.
Settlement Value Symbol:
DJS
Position and Exercise Limits:
No position and exercise limits are in effect. Each member (other than a market-maker) or member organization that maintains an end of day position in excess of 1 million contracts in DJX (DJX and DJX LEAPS) for its proprietary account or for the account of a customer, shall report certain information to the Department of Market Regulation. The member must report information as to whether such position is hedged and, if so, a description of the hedge employed. A report must be filed when an account initially meets the aforementioned applicable threshold. Thereafter, a report must be filed for each incremental increase of 25,000 contracts. Reductions in an options position do not need to be reported. However, any significant change to the hedge must be reported.
Margin:
Purchases of puts or calls with 9 months or less until expiration must be paid for in full. Writers of uncovered puts or calls must deposit / maintain 100% of the option proceeds* plus 15% of the aggregate contract value (current index level x $100) minus the amount by which the option is out-of-the-money, if any, subject to a minimum for calls of option proceeds* plus 10% of the aggregate contract value and a minimum for puts of option proceeds* plus 10% of the aggregate exercise price amount. (*For calculating maintenance margin, use option current market value instead of option proceeds.)
Additional margin may be required pursuant to Exchange Rule 12.10.
Cusip Number:
12486C
Trading Hours:
8:30 a.m. - 3:15 p.m. Central Time (Chicago time).