Nasdaq-100® Index Options
The Nasdaq-100 Index is a capitalization-weighted index composed of 100 of the largest non-financial securities listed on the Nasdaq Stock Market. The index was created in 1985 with a base value set to 250 on February 1 of that year. After reaching a level of nearly 800 on December 31, 1993, the index level was halved on January 3, 1994. The Nasdaq Stock Market calculates and disseminates the Nasdaq-100 Index every 15 seconds during the trading day.
Strike Price Intervals:
In-, at- and out-of-the-money strike prices are initially listed. New series generally will be added when the Nasdaq-100 trades through the highest or lowest strike price available.
Stated in decimals. One point equals $100. Minimum tick for options trading below 3.00 is 0.05 ($5.00) and for all other series, 0.10 ($10.00).
Saturday immediately following the third Friday of the expiration month until February 15, 2015. On and after February 15, 2015, the expiration date will be the third Friday of the expiration month.
Up to three near-term months plus up to three additional months from the March quarterly cycle (March, June, September and December).
European - Nasdaq-100 options generally may be exercised only on the last business day before the expiration date.
Last Trading Day:
Trading in Nasdaq-100® options will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.
Exercise will result in delivery of cash on the business day following expiration. The exercise-settlement value, NDS, is calculated using the opening sales price, as determined by the Nasdaq Stock Market, of each component security on the last business day (usually a Friday) before the expiration date. The exercise-settlement amount is equal to the difference between the exercise-settlement value and the exercise price of the option, multiplied by $100
Position Limit and Exercise Limits:
No position and exercise limits are in effect. Each Trading Permit Holder (other than a market-maker) or TPH organization that maintains an end of day aggregate position in excess of 100,000 contracts in NDX, MNX and MML (10 MNX, 10 MML or 10 Mini-NDX options equal 1 NDX full value contract) for its proprietary account or for the account of a customer, shall report certain information to the Department of Market Regulation. The TPH must report information as to whether such position is hedged and, if so, a description of the hedge employed e.g. stock portfolio current market value, other stock index option positions, stock index futures positions, options on stock index futures; and for customer accounts, provide the account name, account number and tax ID or social security number. Thereafter, if the position is maintained at or above the reporting threshold, a subsequent report is required on Monday following expiration and when any change to the hedge results in the position being either unhedged or only partially hedged. Reductions below these thresholds do not need to be reported.
Purchases of puts or calls with 9 months or less until expiration must be paid for in full. Writers of uncovered puts or calls must deposit / maintain 100% of the option proceeds* plus 15% of the aggregate contract value (current index level x $100) minus the amount by which the option is out-of-the-money, if any, subject to a minimum for calls of option proceeds* plus 10% of the aggregate contract value and a minimum for puts of option proceeds* plus 10% of the aggregate exercise price amount. (*For calculating maintenance margin, use option current market value instead of option proceeds.) Additional margin may be required pursuant to Exchange Rule 12.10.
8:30 a.m. - 3:15 p.m. Central Time (Chicago time).
Position and exercise limits are subject to change.
1 Ten (10) Mini-NDX options are equivalent to 1 full-value NDX option.
2 Ten (10) MML options are equivalent to 1 full-value NDX option.