Options on Nasdaq 100® (NDX, MNX) www.cboe.com/NDX

In recent years interest in the Nasdaq-100 Index has grown tremendously, as evidenced by the increased trading volume in options and exchange-traded funds (ETFs) related to the index. Cboe's options on the Nasdaq-100 Index are designed to provide investors different ways to efficiently gain exposure to the equity markets and execute risk management, hedging, asset allocation and income generation strategies.


  • The Nasdaq-100 Index, launched in January 1985, represents the largest and most active non-financial domestic and international issues listed on The Nasdaq Stock Market® based on market capitalization. The index is calculated under a modified capitalization-weighted methodology.
  • Nasdaq-100 Index Options. Trading in cash-settled options on the Nasdaq-100 (NDX) index began on the Cboe on February 7, 1994.
  • 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.
  • PowerShares QQQ ETF represents ownership in the Nasdaq-100 Trust, a long-term unit investment trust established to accumulate and hold a portfolio of the equity securities that comprise the Nasdaq-100 Index®. Its initial market value approximates 1/40 the value of the underlying Nasdaq-100 Index.

In addition, in order to help provide investors with an indication of expected future volatility in NDX options, the Cboe calculates and disseminates prices for the Cboe Nasdaq Volatility Index (ticker symbol: VXNSM) which is based on the implied volatility of NDX options. VXN is constructed so that, at any given time, it represents the implied volatility of a hypothetical at-the-money NDX option with thirty calendar days to expiration.

In July 2006 Cboe listed Quarterly options on five Exchange Traded Funds (ETFs): QQQ, IWM, DIA, SPY, and XLE. For more information on Quarterly options please visit these links:

News Release Dated July 7, 2006
Contract Specifications for Quarterlys

Updated Price Charts