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S&P 100® Index Options (OEX, XEO, OEF)     www.cboe.com/OEX

 
OEX and XEO
iShares S&P 100 Index Options - OEF S&P 100 Index Options - XEO  
SPX 1978.91 0.57
XSP 197.89 0.06
OEX 880.20 0.32
XEO 880.20 0.32
VIX 12.56 -0.13
Delayed Quotes
 
OEF
S&P 100 Index Options - OEX  
SPX 1978.91 0.57
XSP 197.89 0.06
OEX 880.20 0.32
OEF 88.16 0.02
VIX 12.56 -0.13
Delayed Quotes



This website is designed to provide education on some of the many ways to manage equity portfolio exposure using these S&P 100 options products:



Spreadsheets with Historical Price Data

Historical Daily Prices - Spreadsheet with Closing Prices for Several Indexes
Historical Month-end Prices - Spreadsheet with Closing Prices for Several Indexes
In addition, Market Data Express gives users access to more than 16 years of historical options data



S&P 100 options with European-style exercise (XEO)

There's a way to manage exposure to large-cap, blue-chip U.S. stocks - options on the S&P 100 (XEO).
Features of XEO options include:

  • European-style exercise. XEO options generally may be exercised only on the last business day before expiration, and thus XEO options will be exercisable only on the third Friday of the month (unless this is a holiday). Some investors prefer this European-style feature, which means that XEO is not subject to the uncertainties involved with possible early exercise. (On the other hand, the OEX® S&P 100 options and most equity options have an American-style exercise feature that allows option owners to exercise at any time up to and including the last trading day before expiration.)
  • Unique pricing characteristics. Because of their European-style exercise, some XEO options might be cheaper than their OEX counterparts with American-style exercise.
  • P.M. settlement. XEO and OEX options are subject to P.M. settlement, which refers to the use of the closing price of the index on the last trading day (usually the third Friday) as the basis for settlements of exercises and assignments.
  • Full-value XEO LEAPS. Investors wishing to manage long-term exposure can use full-value XEO LEAPS®.
  • Investment Power and Flexibility. XEO options may allow investors to participate in the price movement of a large segment of the domestic stock market with a single transaction. Bullish, bearish and neutral investors can all use S&P 100 options to implement their individual opinions of the S&P 100 market. XEO options can be used for profit or protection, with opportunities to adjust for changing markets.


Background on S&P 100 Options

S&P 100 options bring an added dimension to stock market investing by giving you the ability to trade and invest on an entirely different level. Instead of requiring you to focus on specific stocks, S&P 100 options allow you to trade a large segment of the domestic stock market with a single transaction.

To provide investors with added flexibility in managing large-cap U.S. equity exposure, a number of S&P 100 options are now offered:

  • Since 1983 investors have used, cash-settled S&P 100 options (ticker symbol OEX, with American-style exercise) to adjust their equity portfolio exposure. More than one billion OEX options have been traded, making the OEX one of the most popular equity portfolio management tools in history.
  • In February 2001 options on iShares(SM) S&P 100 (ticker symbol OEF, with American-style exercise) were introduced.
  • In July 2001 the CBOE introduced cash-settled S&P 100 options (ticker symbol XEO) with European-style exercise. Some investors prefer this European-style feature, which means that XEO may be exercised only on the day just prior to expiration, and therefore XEO is not subject to the uncertainties involved with possible early exercise.
  • Investors wishing to manage long-term exposure can use 1/5 value OEX LEAPS®or full-value XEO LEAPS®.

Bullish, bearish, and neutral investors can all use S&P 100 options to reflect their individual opinions of the S&P 100 market. You can trade index options for profit or protection, with opportunities to adjust for up, down or unchanging markets. The S&P 100 has established itself firmly as an active investment tool. This popularity stems from four fundamental reasons for using the broad market-based S&P 100:

Simplicity
Investors are able to trade a broad market by making one S&P 100 trading decision rather than making the many decisions involved with investing in numerous individual stocks.

Insurance
S&P 100 options offer a convenient and easy way to reduce the market risk of a broad market portfolio, without disrupting the make-up of the portfolio.

Predetermined Risk
S&P 100 option purchasers risk only the premium they pay for the option. The risk is both known and limited.

Leverage
Purchasing S&P 100 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, an S&P 100 option can increase in value by a multiple of that gain, assuming the correct option series was selected.

The Standard & Poor's 100 Index is a capitalization-weighted index based on 100 highly capitalized stocks from a broad range of industries. More than one billion S&P 100 options contracts have been traded since the CBOE launched the trading of options on the OEX, the first cash-settled securities product, on March 11, 1983. On November 24, 1997, the index had a 2-for-1 split.





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. Please note that in order to simplify this paper, commissions, fees, and taxes are not taken into account. All profit/loss diagrams refer only to approximate results at expiration. 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. OEX® is a registered trademark and SPX™ is a trademark of the Chicago Board Options Exchange, Inc. Dow Jonessm , Dow Jones Internet Commerce Indexsm and Dow Jones Industrial Averagesm are service marks of Dow Jones & Company, Inc. and have been licensed for certain purposes by The Chicago Board Options Exchange, Inc. ("CBOE"). CBOE's options based on the the Dow Jones Internet Commerce Index and the Dow Jones Industrial Average are not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such products. The Nasdaq-100 Index® is a registered mark and NDXsm and NDSsm are service marks of The Nasdaq Stock Market, Inc. These marks are licensed for use by CBOE in connection with the trading of options based on the Nasdaq-100 Index. Such options have not been passed on by The Nasdaq Stock Market, Inc. or its affiliates as to their legality or suitability, and such options are not issued, endorsed, sold or promoted by The Nasdaq Stock Market, Inc. or its affiliates. THE NASDAQ STOCK MARKET, INC. OR ITS AFFILIATES MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO SUCH OPTIONS.

The Goldman Sachs Technology Indexes are the property of Goldman, Sachs & Co. (Goldman Sachs) and have been licensed to the Chicago Board Options Exchange in connection with the trading of options based upon the indexes. Goldman Sachs assumes no liability in connection with the trading of any contract based upon any of the indexes. GSTI is a trademark of Goldman, Sachs & Co. Copyright© Chicago Board Options Exchange 2001.

For any options that are based on reduced values of the Nasdaq-100 Index®, CBOE is solely responsible for calculating and disseminating such reduced values from the corresponding values of the Nasdaq-100 Index, and neither The Nasdaq Stock Market, Inc. nor any of its affiliates (which are collectively referred to as the Corporations) shall have any liability arising out of the calculation or dissemination of such reduced values. Such options have not been passed on by the Corporations as to their legality or suitability, and such options are not issued, endorsed, sold, sponsored or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO SUCH OPTIONS.

For complete information about iShares, request a prospectus by calling 1-800-iSHARES (1-800-474-2737). Read it carefully before investing. Equity investments involve risks, including possible loss of principal.

iShares are distributed by SEI Investments Distribution Co. Barclays Global Fund Advisors serves as an advisor to iShares and is a subsidiary of Barclays Global Investors, N.A., (BGI) neither of which is affiliated with SEI. iShares are not sponsored, endorsed, sold, or promoted by Standard & Poor's. Nor does this company make any representation regarding the advisability of investing in iShares. iShares is a servicemark of Barclays Global Investors, N.A.. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

Not FDIC insured - Have no bank guarantee - May lose value.


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CBOE Volatility Index (VIX)