Jumbo Options Based on the Dow Jones Industrial Average
CONTRACT SPECIFICATIONS
Symbol:
DXL
Underlying:
The "Jumbo DJX" Index, based on 1/10th the value of the Dow Jones Industrial Average ("DJIASM"). The DJIA is a price-weighted index composed of 30 of the largest, most liquid NYSE and NASDAQ listed stocks.
Index Components
Multiplier:
$100.
Strike Price Intervals:
Strike prices are set to bracket the Jumbo DJX Index level in minimum increments of 5 points.
Strike Prices:
In-, at- and out-of-the-money strike prices are initially listed. New strikes can be added as the index moves up or down.
Premium Quotation:
Stated in decimals. One point equals $100. Minimum tick for options trading below 3.00 is 0.05 ($5.00) and for all other series, 0.10 ($10.00).
Exercise Style:
European - Jumbo DJX options generally may be exercised only on the last business day before expiration.
Last Trading Day:
Trading in Jumbo DJX options will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.
Expiration Date:
Saturday following the third Friday of the expiration month.
Expiration Months:
Up to three near-term months plus up to three months on the March quarterly cycle.
Settlement of Option Exercise:
Exercise will result in delivery of cash on the business day following expiration. The exercise settlement value, DKU, 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 Limit:
No position and exercise limits are in effect. Each member (other than a market-maker) or member organization that maintains an end of day aggregate position in excess of 100,000 contracts in Jumbo DJX and DJX (DJX and DJX LEAPS; 10 DJX contracts equal 1 Jumbo DJX contract) 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:
124894
Trading Hours:
8:30 a.m. - 3:15 p.m. Central Time (Chicago time).