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Options on Nasdaq 100® (NDX, MNX, QQQ)

Options on Nasdaq 100 Index Options - NDX   Options on Nasdaq 100 Index Options - MNX  
NDX 4242.09 19.43
QQQ 103.67 0.46
BXN 438.00 0.12
VXN 14.87 -0.84
VIX 13.58 -0.38
Delayed Quotes
Options on Nasdaq 100 Index Options - QQQ

In recent years interest in the Nasdaq-100 Index has grown tremendously, as evidenced by the increased trading volume in options and exchange-traded funds (ETFs) related to the index.

  • The Nasdaq-100 Index, launched in January 1985, represents the largest and most active non-financial domestic and international issues listed on The Nasdaq Stock Market® based on market capitalization. The index is calculated under a modified capitalization-weighted methodology.
  • Nasdaq-100 Index Options. Trading in cash-settled options on the Nasdaq-100 (NDX) index began on the CBOE on February 7, 1994.
  • PowerShares QQQ ETF represents ownership in the Nasdaq-100 Trust, a long-term unit investment trust established to accumulate and hold a portfolio of the equity securities that comprise the Nasdaq-100 Index®. Its initial market value approximates 1/40 the value of the underlying Nasdaq-100 Index.

Contract Ticker Contract Size (if NDX is at 1400) Settlement
Nasdaq-100 Index Options NDX The cash-settled NDX index options have a multiplier of 100; thus, if the NDX price level is 1400, an investor could consider hedging $140,000 of equity exposure with one NDX options contract. Cash-settled
MNX® - CBOE Mini-NDX Index Options MNX® The MNX index has a price based on 1/10 the value of the NDX index, so, for example, if the NDX index is at 1400, the MNX will be 140. MNX index options have a multiplier of 100; thus, if the MNX price level is 140, an investor could consider hedging $14,000 of equity exposure with one MNX options contract. Cash-settled
PowerShares QQQ ETF QQQ The initial market value of QQQ generally approximates 1/40 the value of the underlying Nasdaq-100 Index. So for example, if the NDX price level is 1400, the QQQs generally would be expected to be priced around $35. Delivery of QQQ shares in three business days. All Nasdaq-100 Index Tracking Stock shares are held in book-entry form only at The Depository Trust Company (DTC).
Options on Nasdaq-100 Index Tracking Stock QQQ QQQ options, like all equity options, have a 100 multiplier, so if QQQ is at $35, an investor could consider hedging $3,500 of QQQ equity exposure with one QQQ options contract. Exercise notices properly tendered on any business day will result in delivery of QQQ shares on the third business day following exercise.

In addition, in order to help provide investors with an indication of expected future volatility in NDX options, the CBOE calculates and disseminates prices for the CBOE Nasdaq Volatility Index (ticker symbol: VXNSM) which is based on the implied volatility of NDX options. VXN is constructed so that, at any given time, it represents the implied volatility of a hypothetical at-the-money NDX option with thirty calendar days to expiration.

In July 2006 CBOE listed Quarterly options on five Exchange Traded Funds (ETFs): QQQ, IWM, DIA, SPY, and XLE. For more information on Quarterly options please visit these links:

News Release Dated July 7, 2006
Contract Specifications for Quarterlys

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.

Options involve risk and are not suitable for all investors. Prior to buying or selling options, 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 in these materials 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 changes that may not be reflected in these materials. No statement within these materials should be construed as a recommendation to buy or sell a security or to provide investment advice. Any strategies discussed, including examples, do not include commissions, dividends, margin, taxes, and other transaction costs. However, these costs will affect the outcome of transactions and should be considered. S&P 100 and S&P 500 are registered trademarks of the McGraw-Hill Companies, Inc., and are licensed for use by the Chicago Board Options Exchange, Inc. (CBOE). The "Russell 2000 Index" is a registered trademark of Frank Russell Company. The Nasdaq 100 is a registered mark of The Nasdaq Stock Market, Inc. "Dow JonesSM", "Dow Jones Industrial AverageSM", "Dow Jones Transportation AverageSM", and "Dow Jones Utility AverageSM" are service marks of Dow Jones & Company, Inc. and have been licensed for certain purposes by the CBOE. LEAPS, FLEX, FLexible EXchange, CBOE, Chicago Board Options Exchange and OEX are registered trademarks of CBOE, and Long-term Equity AnticiPation SecuritiesTM and SPXTMare trademarks of the CBOE.

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CBOE Volatility Index (VIX)