DOOM and CEBO
For years, sophisticated investors have used listed options as alternatives to OTC-traded credit derivatives such as credit default swaps (CDS).
CBOE is now highlighting "DOOMSM"or "Deep Out-Of-the Money" put options because investors are demanding listed alternatives now more than ever before. The following link DOOM Quick Reference Guide explains how DOOM Put Options and CDS are functionally similar, and provides several specific examples that compare the viability of DOOM Put Options to CDS. It also provides a list of potential names where investors may currently use DOOM Put Options and Credit Event Binary Options (CEBOs) in place of CDS. Below is a list of single-name entities that have equity DOOM puts and CEBOs listed on them. For additional information regarding CEBOs please refer to www.cboe.com/credit.
Deep-Out-Of-Money Puts and Credit Event Binary Options (CEBOs)
January 2012 Equity Puts
||Stock Price @
||CDS Spreads @
|AK STEEL CORPORATION
|AMERICAN AXLE & MANUFACTURING, INC.
|K. HOVNANIAN ENTERPRISES, INC