CBOE EXCHANGE INDEX OPTIONS
The CBOE Exchange Index (EXQ) is an equal-dollar weighted sector index composed of security and futures exchanges, all of which are either U.S.-listed common stocks, American Depository Receipts (ADRs), New York Registered Shares (NYSs) or NYSE Global Shares® (NGSs). The components are either traded on the NYSE or the NASDAQ Stock Market. The index will be re-balanced on a quarterly basis (after the close of trading on the third Friday of March, June, September and December).
Strike Price Intervals:
Strike prices below 200 are listed with minimum intervals of 2.5 points. Strike prices above 200 are listed with minimum intervals of 5 points.
In-, at- and out-of-the-money strike prices are initially listed. New strikes can be added as the indexes move up or down.
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).
European - CBOE Exchange Index options generally may be exercised only on the last business day before expiration.
Saturday following the third Friday of the expiration month.
Up to three near-term months plus up to three months on the March quarterly cycle. LEAPS with expirations up to five years in the future may also be listed.
Exercise will result in delivery of cash on the business day following expiration. The exercise-settlement value, EXU, 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.
2,000 contracts. (CBOE Rule 24.4B. Position Limits for Options on Micro Narrow-Based Indexes).
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 20% 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 current market value instead of option proceeds.) Additional margin may be required pursuant to Exchange Rule 12.10.
Last Trading Day:
Trading in CBOE Exchange Index options will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.
8:30 a.m. to 3:00 p.m. Central Time (Chicago time).