End-of-Month SPX Options
CBOE announced that on July 7, 2014, it plans to introduce PM-settled, End-of-Month options series (EOM) -- with expiration dates falling on the last business day of the month -- for its S&P 500® Index (SPXSM) options. CBOE is adding SPX EOM options to its SPX options product line in response to requests from asset managers who want to more precisely match SPX option expirations to end-of-month fund cycles and fund performance periods.
News Release on SPX EOM Options (May 29, 2014)
CBOE Circular - Symbol Change for SPX End-of-Quarter Options and New SPX End-of-Month Options (May 29, 2014)
CBOE Circular - End-of-Month Fair Value Non-Trading Closing Rotations in Symbols SPX and SPXW (June 20, 2014)
S&P 500 Options, including End-of Week and End-of-Quarter Options
End-of-Month S&P 500 Options - Specifications
Options Prices - Delayed Quotes
Index Options Strategies
Key Features of SPX EOM Options
- End-of-month SPX options expire on the last trading day of each month to coincide with end-of-month accounting practices. (By comparison, traditional options generally expire on the Saturday immediately following the third Friday of the expiration month until February 15, 2015. On and after February 15, 2015, the expiration date will be the third Friday of the expiration month.)
LARGE CONTRACT SIZE WITH A $100 MULTIPLIER
- If the S&P 500 Index is at 1900, SPX EOM options have a notIonal size of about $190,000 (ten times larger than SPY options).
- Preferred by many investors, including those with end-of-month reporting needs.
- The ability to trade in and out of positions on settlement day.
CASH-SETTLEMENT, EUROPEAN-STYLE EXERCISE
- Like SPX and most other index options, and unlike SPY and other ETF options.
- No risk of early assignment and loss of dividends, no portfolio disruption on assignment.
- CBOE Circulars (RG99-09 and RG00-171) allow SPX options to be written on a "covered" basis against SPY or IVV ETF shares in a margin account, provided the investor's brokerage firm has such policies in place.
- The S&P 500 End-of-Month options will trade on the Hybrid trading platform in the SPX options chain under the SPXW options root ticker symbol.