S&P 500® Index Options - PM-Settled
The Standard & Poor's 500 Index is a capitalization-weighted index of 500 stocks from a broad range of industries. The component stocks are weighted according to the total market value of their outstanding shares. The impact of a component's price change is proportional to the issue's total market value, which is the share price times the number of shares outstanding. These are summed for all 500 stocks and divided by a predetermined base value. The base value for the S&P 500 Index is adjusted to reflect changes in capitalization resulting from mergers, acquisitions, stock rights, substitutions, etc.
CBOE Hybrid Trading Platform
Price / Time, no customer priority
AIM active with 40% participation right
No DPM, PMM
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).
In-, at- and out-of-the-money strike prices are initially listed. New series are generally added when the underlying trades through the highest or lowest strike price available.
Strike Price Intervals:
The minimum interval for SPXPM options shall be no less than five points.
CBOE may list SPXpm series that have -
1. Five (5) consecutive near-term Fridays expiration dates; plus
2. Up to eleven (11) additional "standard" (i.e., 3rd Friday) expiration dates with maturities less than 12 months; plus
3. Up to twelve (12) additional end-of-month expiration dates with maturities less than 12 months; plus
4. Up to ten (10) additional expirations dates with maturities between 12 and 60 months.
European - SPXpm options generally may be exercised only on the expiration date.
Last Trading Day:
Trading in standard SPXpm options will ordinarily cease on the business day (usually a Friday) preceding the expiration date. Trading in all other SPXpm options will ordinarily cease on the expiration date.
Exercise will result in delivery of cash on the business day following expiration. The exercise-settlement value, SPXpm, is the official closing price of the S&P 500 Index as reported by Standard & Poor's on the last business day 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 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 position in excess of 100,000 contracts in SPXpm for its proprietary account or for the account of a customer, shall report certain information to the Department of Market Regulation via email at IndexReporting@cboe.com. 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.
Extended Hours: 2:00 a.m. to 8:15 a.m. Central time (Chicago time).
Regular Hours: 8:30 a.m. to 3:15 p.m. Central time (Chicago time).