Short Term Option Series Program - Contract Specifications
Weeklys that are part of the Short Term Options Program have a contract duration term
of approximately one week and are typically listed on Thursdays to expire on the Friday
of the following business week. The options expire on any Friday of the month, other
than the third-Friday-of-the-month. Also, Short Term Options will not be listed for
expiration on a date that a Quarterly option is already set to expire on the same date. In
the case of a holiday on the listing date, the listing date is moved back one business day
(e.g. from Thursday to Wednesday). In the case of a holiday on the expiration date, the
expiration date is moved back one business day (e.g. from Friday to Thursday).
Settlement is the same as regular options on the same underlying, e.g., ETF and equity
option series are p.m.-settled, OEX and XEO option series are p.m.-settled, other broadbased index Weeklys options series are a.m.-settled. (Note that SPX does not participate
in the Short Term Option Series Program and, instead, participates in the "End of Week"
Program. They are p.m.-settled on Fridays. See (link to SPX EOW contract specs) for
more details) http://www.cboe.com/micro/weeklys/EndOfWeekSpecs.aspx.
There is currently a limitation on the number of Weeklys classes that can be offered. Specifically, CBOE may select up to thirty currently listed option classes and may also match any options classes selected by other exchanges that employ a similar program. Up to thirty strike prices may be listed per class, comprised of twenty initial series and 10 additional series. All strike prices listed must be within 30% of the current value of the underlying.
Other than listing and expiration date procedures, and the strike price limitations, all
product specifications for Short Term Options match those of regular options with the
same underlying. (Note that there are no SPX Short Term Options. See (link to SPX
EOW contract specs) for SPX End of Week options contract specifications). Short Term
Option positions are included with other options in the same class for purposes of
margins and position limits. See http://www.cboe.com/products/Cash-SettledIndexOptions.aspx, http://www.cboe.com/Products/OptionsOnETFs.aspx and
http://www.cboe.com/Products/EquityOptionSpecs.aspx for links to product
specifications for index options, ETFs and equities.
See also CBOE Rules 5.5(d) and 24.9(a)(2)(A).