CBOE Mini-NDX Long-Dated Options
Symbol:
MML
Underlying:
The CBOE Mini-NDX Index is based on 1/10th the value of the Nasdaq-100 Index® (NDX). NDX is a modified capitalization-weighted index composed of 100 of the largest non-financial securities listed on the Nasdaq Stock Market. The index was created in 1985 with a base value set to 250 on February 1 of that year. After reaching a level of nearly 800 on December 31, 1993, the index level was halved on January 3, 1994.
Index Components
Multiplier:
$100.
Strike Price Intervals:
Minimum of 20 points.
Strike Prices:
In-,at- and out-of-the-money strike prices are initially listed. New series are generally added when the underlying trades through the highest or lowest strike price available.
Premium Quote:
Stated in points and fractions. One point equals $100. Minimum tick for series trading below 3 is 1/16 ($6.25) and for all other series, 1/8 ($12.50).
Expiration Date:
Saturday following the third Friday of the expiration month.
Expiration Months:
June and December. Up to 24 months. The near-term series converts to MNX two business days following June and December expirations. New MML series are normally added on the first business day of January and July.
Exercise Style:
June and December. Up to 24 months. The near-term series converts to MNX two business days following June and December expirations. New MML series are normally added on the first business day of January and July.
Last Trading Day:
Trading in MNX/MML options (see "Expiration Months" above) will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise & settlement value is calculated.
Settlement of Option Exercise:
MML options cannot be exercised. Once converted (see above), MML options assume the exercise specifications of MNX options. The exercise-settlement value for MNX options, XMS, is computed by dividing the NDX settlement value, NDS, by a factor of 10. Exercise will result in delivery of cash on the business day following expiration.
Position Limit 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 aggregate position in excess of 100,000 contracts in NDX, MNX and MML (10 MNX, 10 MML or 10 Mini-NDX options equal 1 NDX full value 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 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.
Margin:
Purchases of puts or calls with 9 months or less until expiration must be paid 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 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.
Trading Hours:
8:30 a.m. - 3:15 p.m. Central Time (Chicago time).
1 Ten (10) Mini-NDX options are equivalent to 1 full-value NDX option.
2 Ten (10) MML options are equivalent to 1 full-value NDX option.
Options involve risk and are not suitable for all
investors. Prior to buying or selling an option, a person must receive a copy
of Characteristics and Risks of Standardized
Options (ODD). Copies of the ODD are available from your broker, by
calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North
Wacker Drive, Suite 500, Chicago, Illinois 60606. The information on this
website is provided solely for general education and information purposes and
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