Russell 1000 Index Options
Underlying:
The Russell 1000 Index is designed to measure the performance of the top 1,000 companies from a universe of the 3,000 largest stocks in the U.S. The index is capitalization-weighted and includes only common stocks belonging to corporations domiciled in the US and its territories and traded on the NYSE, NASDAQ or the AMEX. The Russell 1000 Index is adjusted once per year, in June, to reflect changes in rankings and shares outstanding.
Symbol:
RUI
Multiplier:
$100.
Strike Price Intervals:
Strike prices below 200 are listed with minimum intervals of 5 points. Strike prices above 200 are listed with minimum intervals of 10 points
Strike (Exercise) Prices:
In-, at- and out-of-the-money strike prices are initially listed. New strikes can be added as the indexes move 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 - Russell 1000 Index options generally may be exercised only on the last business day before expiration.
Expiration Date:
Saturday following the third Friday of the expiration month.
Expiration Months:
Three near-term months plus three months on the March quarterly cycle. LEAPS with expirations up to five years in the future may also be listed.
Settlement of Option Exercise:
Exercise will result in delivery of cash on the business day following expiration. The exercise settlement value (RIR - Russell 1000) is calculated using the first (opening) reported 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:
The aggregate position and exercise limits for options and LEAPS is 50,000 contracts on the same side of the market with no more than 30,000 in the near-term month. An index option hedge exemption for public customers may be available for certain diversified portfolios, which may expand the position limit up to an additional 75,000 contracts. In, addition proprietary accounts of member organizations may receive an exemption up to 100,000 contracts for the purpose of facilitating public customer orders. The exercise limit is the same as the position limit.
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. Additional margin may be required pursuant to Exchange Rule 12.10. (*For calculating maintenance margin, use option current market value instead of option proceeds.)
Last Trading Day:
Trading in Russell Index options will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.
Trading Hours:
8:30 a.m. - 3:15 p.m. Central Time (Chicago time).
Position and Exercise limits are subject to change.
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
therefore should not be considered complete, precise, or current. Many of the
matters discussed are subject to detailed rules, regulations, and statutory
provisions which should be referred to for additional detail and are subject to
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