Russell 2000 Index Options - RUT
Options on Russell 2000® Index (RUT) www.cboe.com/RUT


The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. Options on the index, which go by CBOE ticker RUT (ticker RTY on Bloomberg), provide opportunities for increasing yields and managing risks efficiently.

Key features of RUT options include:

  • Large Notional Size -- around $126,000 per contract with the RUT index at 1260 (approximately 10 times that of options on the IWM Exchange Traded Fund)
  • No Early Exercise of RUT Options - European-style Exercise
  • Cash-settlement with No Delivery of Stocks or ETFs
  • Price and Quote Transparency with Competitive Auction Markets for Leading Option Contracts
  • Daily Mark-to-market for SEC-regulated securities
  • Clearance of Transactions is guaranteed by the Options Clearing Corporation
  • Tax Treatment under section 1256 of the Tax Code, profit and loss on transactions in certain exchange-traded options, including RUT options, are entitled to be taxed at a rate equal to 60% long-term and 40% short-term capital gain or loss, provided that the investor involved and the strategy employed satisfy the criteria of the Tax Code*

* Investors should consult with their tax advisors to determine how the profit and loss on any particular option strategy will be taxed. Tax laws and regulations change from time to time and may be subject to varying interpretations.

Charts


The Russell 1000® Index measures the performance of the large-cap segment of the U.S. equity universe.


The CBOE Russell 2000 Volatility IndexSM (RVXSM) is a key measure of market expectations of near-term volatility conveyed by Russell 2000® stock index option prices. It measures the market's expectation of 30-day volatility implicit in the prices of near-term Russell 2000 options. Futures and options are available on the RVX Index.



In order to diversify portfolios, many investors explore the correlations of returns for different investments. The negative correlations of volatility indexes such as the RVX (versus other traditional investments) can be intriguing to investors.


Average daily volume on the Russell 2000 Index (RUT) at CBOE grew to 46,523 in 2014.


The CBOE Russell 2000 BuyWrite Index (BXR) is a benchmark index that measures the performance of a theoretical portfolio that sells Russell 2000 Index (RUT) call options against a portfolio of the stocks included in the Russell 2000 Index. The BXR Index often has had less volatility than the RUT Index.

Updated Price Charts

CBOE Russell 2000 Volatility Index (RVX)

The CBOE Russell 2000 Volatility IndexSM (RVXSM) is a key measure of market expectations of near-term volatility conveyed by Russell 2000® stock index option prices. It measures the market's expectation of 30-day volatility implicit in the prices of near-term Russell 2000 options. Please visit the RVX microsite at www.cboe.com/RVX for more information about the RVX Index, and futures and options on the RVX Index.

Benchmark Index -- CBOE Russell 2000 BuyWrite Index (BXR)

The CBOE Russell 2000 BuyWrite Index (BXR) is a benchmark index that measures the performance of a theoretical portfolio that sells Russell 2000 Index (RUT) call options, against a portfolio of the stocks included in the Russell 2000 Index. A "buy-write," also called a covered call, generally is considered to be an investment strategy in which an investor buys a stock or a basket of stocks, and also sells call options that correspond to the stock or basket of stocks. This strategy can be used to enhance portfolio returns and reduce volatility. Historical daily values for the BXR are available dating back to December 29, 2000. For more information and prices on the BXR Index, please visit www.cboe.com/BXR.

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