On August 15 CBOE launched trading of the new S&P 500® Index (SPX) Monday-expiring Weeklys options. Daily trading volume for the new SPX Monday Weeklys in the first two days was 4,334 on August 15, and 10,829 on August 16. Institutional investors have told me that the SPX Monday Weeklys could have potential to be very helpful to them in managing their over-the-weekend risk. SPX Weeklys are one of CBOE’s fastest-growing products, with volume in 2015 setting a 10th consecutive annual record. With the introduction of SPX Monday Weeklys, CBOE now offers SPX options with Monday, Wednesday and Friday expirations.
SKEW CHART AND 16 SPX EXPIRATIONS IN NEXT 6 WEEKS
The LiveVol skew chart below shows the estimated implied volatilities for S&P 500 options at various strike prices and many expirations.
The left side of the chart above shows the following 15 expirations for the S&P 500 options through the end of September (in addition SPXW options expiring on Tues. Sep. 6 will be listed next week)
1 Fri. Aug. 12 - SPXW
2 Wed. Aug. 17 - SPXW
3 Fri. Aug. 19 - SPX
4 Mon. Aug. 22 - SPXW
5 Wed. Aug. 24 - SPXW
6 Fri. Aug. 26 - SPXW
7 Mon. Aug. 29 - SPXW
8 Wed. Aug. 31 - SPXW
9 Fri. Sep. 2 - SPXW
10 Tues. Sep. 6 - SPXW *
11 Wed. Sep. 7 - SPXW
12 Fri. Sep. 9 - SPXW
13 Wed. Sep. 14 - SPXW
14 Fri. Sep. 16 - SPX
15 Fri. Sep. 23 - SPXW
16 Fri. Sep. 30 - SPXW
On Aug. 19, CBOE plans to list SPXW options expiring on Tues. Sep. 6 (the day after the Labor Day holiday).
FEATURES OF WEEKLYS OPTIONS
Contracts with weekly expirations allow investors to implement more targeted buying, selling, spreading or hedging strategies. In addition, futures and options with weekly expirations can help investors take advantage of breaking news or known economic events, such as earnings, monthly U.S. economic reports and Federal Reserve announcements. Additional information on Weeklys options and futures can be found at www.cboe.com/Weeklys. CBOE pioneered short-term options trading in 2005 by introducing the first weekly expiring options contracts.
FEATURES OF THE NEW SPX MONDAY-EXPIRING WEEKLYS OPTIONS
Trading Hours — Extended and Regular Trading Hours currently in place for the existing SPX/SPXW options are being followed.
Ticker Symbol — SPX Monday-expiring Weeklys series are available for trading under option symbol SPXW.
Expiration and Final Trading Day
- SPX Monday-expiring Weeklys options are PM-settled.
- The expiration date (usually a Monday) will be identified explicitly in the expiration date of the product. If the Monday of the week in which the options expire coincides with an Exchange holiday, the expiration date will be on the next business day (usually a Tuesday). The expiration date for each option is also the last trading day for that option.
- SPX Monday-expiring Weeklys may expire on any Monday of the month, other than a Monday that coincides with an End-of-Month (“EOM”) expiration date.
- Expiring SPX Monday-expiring Weeklys options will cease trading at 3:00 p.m. Central time on their last trading day. All non-expiring SPX Monday-expiring Weeklys options will continue to trade until 3:15 p.m. Central time.
- SPX Monday-expiring Weeklys option series will not be included in the strip of option series that will be used to calculate the CBOE Volatility Index (“VIX Index”) spot value or the exercise or final settlement value of VIX Index options and futures.
For an overview of SPX Monday Weeklys options contract specifications and other operational details
The microsite for SPX Weeklys options is at www.cboe.com/SPXW.