Introduction Contract Specifications for XSP Component Stocks in the S&P 500 Press Releases Index Options Strategies Profit & Loss Diagrams for Strategies Educational Webcasts Quick Reference Guide

Introduction

The Chicago Board Options Exchange (CBOE) began offering an options contract, Mini-SPX options, based on the Standard & Poor's 500 Stock Index, beginning October 25, 2005.

Key features of the proposed Mini-SPX options include the following:

• The ticker symbol for Mini-SPX options is XSP.



• Mini-SPX options have 1/10th the value of the S&P 500® (SPX) Index options (e.g. if the S&P 500 Index is at 1235.00, the Mini-SPX would have a value of 123.50, and notional value covered by the Mini-SPX options (with a $100 multiplier) would be $12,350).


Comparing Index Prices

	Mini-SPX Index	S&P 500® Index	CBOE Volatility Index®	CBOE S&P 500 BuyWrite Index
Ticker	XSP	SPX	VIX®	BXMSM
31-Dec-2002	87.98	879.82	28.62	523.92
31-Dec-2003	111.19	1111.92	18.31	625.38
31-Dec-2004	121.19	1211.92	13.29	677.26
31-Aug-2005	122.03	1220.33	12.6	710.87

Daily Closing Prices on Select Dates. Sources: Bloomberg and CBOE.



• The last trading day for Mini-SPX options generally will be on the business day (usually a Thursday) prior to the third Friday of the expiration month.



• Mini-SPX options trade on CBOE's Hybrid 2.0 Trading System, which includes Remote Market Makers. Trading XSP options on CBOE's Hybrid Trading System offers investors a smaller-sized S&P 500 contract with the combined advantages of electronic trading and the open-outcry market on a single platform.

Links to More Information
Press Release on Mini-SPX Options
S&P 500 (SPX) Options
Options Toolbox

Graphs

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 Jones SM", 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 Securities^TM and SPX^TM are trademarks of the CBOE.