Dow Jones Industrial Average LEAPS®
The Dow Jones Industrial Average (DJIA) is a price-weighted index of 30 of the largest, most liquid NYSE and NASDAQ listed stocks. LEAPS are based on 1/100th of the DJIA level.
DJX Long-term Equity AnticiPation SecuritiesTM are long-dated options based on the Dow Jones Industrial Average. DJX LEAPS expire three years from the date of initial listing.
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 Price Intervals:
Strike prices are listed with minimum intervals of 5 points. Strike (Exercise) Prices: LEAPS have an at-the-money strike and two strikes on either side in 5-point increments. New strikes can be added as the index moves up or down.
New LEAPS can be listed following December expiration of an existing LEAPS series.
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.
Last Trading Day:
Trading in DJX options will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.
European - DJX LEAPS generally may be exercised only on the last business day before expiration.
Exercise will result in delivery of cash on the business day following expiration. The exercise-settlement value, DJS, is calculated using the opening sales price in the primary market of each component security on the last business day (usually a Friday) before the expiration date. The exercise-settlement amount is equal to the difference between the exercise-settlement value and the exercise price of the option, multiplied by $100.
Position and Exercise Limits:
No position and exercise limits are in effect. Each Trading Permit Holder (other than a market-maker) or TPH 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 TPH must report information as to whether such position is hedged and, if so, a description of the hedge employed e.g. stock portfolio current market value, other stock index option positions, stock index futures positions, options on stock index futures; and for customer accounts, provide the account name, account number and tax ID or social security number. Thereafter, if the position is maintained at or above the reporting threshold, a subsequent report is required on Monday following expiration and when any change to the hedge results in the position being either unhedged or only partially hedged. Reductions below these thresholds do not need to be reported.
For purchases of puts or calls with more than 9 months until expiration, deposit / maintain 75% of the total cost / option current market value. When time to expiration reaches 9 months, the option no longer has value for margin purposes. 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 total cost / option proceeds.)
Additional margin may be required pursuant to Exchange Rule 12.10.
8:30 a.m. - 3:15 p.m. Central Time (Chicago time).