WEEKLYS SHORT-TERM S&P 100 INDEX OPTIONS
Symbol:
RZA, RZB, RZD, RZE (Weeks 1 through 4 root symbols)
Underlying:
The Standard & Poor's 100 Index is a capitalization-weighted index of 100 stocks from a broad range of industries. The component stocks are weighted according to the total market value of their outstanding "free float" shares.
Index Components
Contracts Listed:
New series of short-dated Standard & Poor's 100 index options are listed each Friday morning and expire one week following their listing date. The third character in the root symbol denotes the expiration week of a given month. For example, RZA is the symbol for S&P 100 short-term options that expire on the first Friday of the month; RZB is the symbol for S&P 100 short-term options that expire on the second Friday of the month, etc. No more than two classes of short-term options based on the same underlying may be listed at the same time. For example, RZB is listed on the first Friday of a month, the day on which RZA options expire.
No Short Term Option Series may expire in the same week in which monthly option series expire.
Multiplier:
$100.
Strike Price Intervals:
No less than 5 points. Strike price intervals shall be the same as standard OEX options.
Strike Prices:
Twenty strike prices may be listed. All strike prices listed must be within 30% of the current value of the underlying index.
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:
American. Short-term S&P 100 Index options generally may be exercised on any business day before the expiration date.
Last Trading Day:
Trading in short-term S&P 100 Index options ordinarily cease on the business day (usually a Friday) that the options expire.
Expiration Date:
The Friday following the Friday of the listing of the options.
Settlement Value:
Exercise will result in delivery of cash on the business day following the day the exercise notice is properly submitted. The exercise-settlement value, OEX, is calculated using the last (closing) reported sales price in the primary market of each component stock on the last business day before the expiration date or on the day the exercise notice is properly submitted if exercised before expiration. 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:
As with OEX options, there are no position limits for short-dated Standard & Poor's 100 index options. However, positions in short-dated Standard & Poor's 100 index options shall be aggregated with positions in OEX options for the purposes of satisfying the reporting requirements under Interpretation and Policy .03 to Rule 24.4, which, among other things, requires members to submit a report to the CBOE whenever they maintain an aggregated position in OEX options in excess of 100,000 contracts. 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:
Margins would match those of standard options on the S&P 100 Index. Uncovered writers must deposit 100% of the option proceeds plus 15% of the aggregate contract value (current index level multiplied by $100) minus the amount by which the option is out-of-the-money, if any. Minimum margin is 100% of the option proceeds plus 10% of the aggregate contract value. Long puts or calls must be paid for in full.
Cusip Number:
783790
Trading Hours:
8:30 a.m. - 3:15 p.m. Central Time (Chicago time).
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
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