SPX WeeklysSM Options

SPX WeeklysSM Options (SPXW)

CBOE offers a suite of options based on the S&P 500® Index with weekly expirations, SPXW Weeklys (SPXW). SPXW Weeklys are options that are listed to provide expiration opportunities every week, and now offer three different expirations per week.

For a current list of SPXW Weeklys expiration dates please click here.

SPXW Weeklys can provide opportunities for investors to implement more targeted buying, selling or spreading strategies. Specifically, SPXW Weeklys may help investors efficiently take advantage of market events, such as earnings, government reports and Fed announcements.

Expirations for SPXW Weeklys

In 2016 CBOE began to offer SPXW Weeklys with Monday and Wednesday expirations, in addition to the existing SPXW Weeklys with Friday expirations (SPXW EOW). As with SPXW Weeklys with Friday expirations, CBOE has the ability to list up to 12 consecutive expirations in SPXW Weeklys with Monday expirations and up to 12 consecutive expirations in SPWX Weeklys with Wednesday expirations. Similar to SPXW Weeklys with Friday expirations, CBOE maintains six consecutive expirations in SPXW Weeklys with Monday expirations and six consecutive expirations in SPXW Weeklys with Wednesday expirations.

SPXW Weeklys are PM-settled on the last trading day, typically a Friday for SPXW EOW Weeklys, a Wednesday for SPXW Wednesday Weeklys, and a Monday for SPXW Monday Weeklys. As with other PM-settled index options, the exercise-settlement value is calculated using the last (closing) reported sales price in the primary market of each component stock. On the last trading day, trading in expiring SPXW Weeklys closes at 3:00 p.m. (Chicago time). All non-expiring SPXW Weeklys continue to trade until 3:15 p.m. (Chicago time).

As for all Weeklys, SPXW Weeklys will not be listed if they would expire on the same day on which a different expiration already exists, i.e., standard 3rd Friday, End of Month or Quarterly expirations. In addition, if the listing or expiration dates fall on a holiday, the dates will be adjusted as follows in the below chart.

SPXW
List Date
If Holiday
Expiration Date
If Holiday
Friday EOW
Thursday
Prior Day
Friday
Prior Day
Wednesday Weeklys
Tuesday
Prior Day
Wednesday
Prior Day
Monday Weeklys
Friday
Prior Day
Monday
Following Day

All SPXW Weeklys and standard (3rd Friday/AM-settled) SPX options trade during extended and regular trading hours. Extended trading hours are from 2:00 a.m. to 8:15 a.m. (Chicago time) on Monday through Friday and regular trading hours from 8:30 a.m. to 3:15 p.m. (Chicago time) on Monday through Friday. Please visit the Extended Trading Hours webpage for more details.

Key Features of SPXW WeeklysSM (Friday EOW, Wednesday and Monday Weeklys) Include:

  1. Hybrid Trading System For Trading Flexibility
    • SPX Weeklys are available on CBOE's Hybrid® Trading System , which incorporates electronic and open-outcry trading in order to enable investors to choose their trading method.
  2. PM-Settlement
    • Aligns with single-stock options and ETF options and with S&P 500 options traded OTC.
    • Preferred by many investors including those with end-of-day reporting needs.
    • The ability to trade in and out of positions on settlement day.
  3. Large Contract Size With a $100 Multiplier
    • If the S&P 500 Index is at 1400, SPX Weeklys options have a notional size of about $140,000 (ten times larger than SPY options).
  4. Cash-Settlement, European-Style Exercise
    • Like SPX and most other index options, and unlike SPY and other ETF options.
    • No risk of early assignment and loss of dividends, no portfolio disruption on assignment.
  5. Margin
    • CBOE Regulatory Circular RG15-183 notes that CBOE rules allow a short position in a cash-settled-index option established and carried in a margin account to receive covered margin treatment, if the short option position is offset in the same account by an equivalent position in an index-tracking ETF that is based on the same index that underlies the short option(s).

      In order to receive covered margin treatment, the market value of the offsetting ETF position must be equivalent or exceed the current aggregate index value of the option being covered. One should note that not all ETFs are managed so as to maintain a share price that is a constant fraction (e.g., 1/10 th, 1/100 th, 1/1,000 th, etc.) of the index being tracked.
  6. Tax Treatment
    • Under section 1256 of the Tax Code, profit and loss on transactions in certain exchange-traded options, including SPX and SPXpm, 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.