Option on the Dow Jones Industrial Average (DJX) www.cboe.com/DJX

 
Option on the Dow Jones Industrial Average - DJX  

DJX is the symbol for options based on The Dow Jones Industrial AverageSM (DJIASM).

The DJX index option contract is based on 1/100th (one-one-hundredth) of the current value of the Dow Jones Industrial Average. So, for example, when DJIA is at 11,000, the DJX level will be 110. The DJIA - the index on which the DJX contracts are based - is the oldest (established 1896) continuing U.S. market index, and the DJIA probably is the world's best known stock index to individual investors. Options on the Dow are available from 8:30 a.m. to 3:15 p.m. CT.

Since their introduction in 1997, DJX options have grown to become some of the most popular index options worldwide. This popularity leads to four fundamental reasons for using DJX options:

Simplicity

Investors are able to trade a broad market by making one DJX trading decision rather than making the many decisions involved with investing in numerous individual stocks.

Insurance

DJX options offer a convenient and easy way to help reduce the market risk of a broad market portfolio, without disrupting the make-up of the portfolio.

Predetermined Risk

DJX option purchasers risk only the premium they pay for the option, plus commissions. The risk is both known and limited.

Leverage

Purchasing DJX options, instead of buying or selling numerous individual stocks, provides an investor with an additional opportunity to use investment capital elsewhere. For a relatively small percentage gain in the underlying index, a DJX option can increase in value by a multiple of that gain, assuming the correct option series was selected.

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Updated Price Charts

Options Profit-and-Loss Diagrams

* In the Protective Put and Buy-write diagrams, the faint grey line represents an equity position, and the colored "hockey-stick-shaped" line represents the combined stock plus options position. For more details, please click on strategies.