CBOE is planning a change to the symbol for existing SPXPM option series to option symbol SPXW in both the Regular Trading Hours (RTH) and Extended Trading Hours (ETH) session. The change is scheduled to be effective May 1, 2017. This conversion is designed to allow greater ease of access for those looking to place spreads from week to week. We have received some very positive feedback from institutional investors on this change to the symbol SPXW.
After the conversion, on standard expiration dates (i.e., generally the third Friday of the month), both AM-settled options trading under symbol SPX and PM-settled options trading under symbol SPXW, both of which have the same underlying SPX index, will expire and be settled. The settlement symbol for the AM-settled SPX options will be “SET”; settlement for the PM-settled SPXW options is based on the official SPX closing price on the expiration date.
For more details, see www.cboe.com/SPXW and CBOE Regulatory Circular RG17-002.
AVERAGE DAILY VOLUME FOR S&P 500 OPTIONS TOPS 1.19 MILLION
As shown in the chart below, CBOE now offers S&P 500 options with expirations on Mondays, Wednesdays, Fridays, and month-ends, and the average daily volume for all the S&P 500 options was more than 1.19 million contracts this month (through March 29).
S&P 500 VOLATILITY SKEW CHART
The S&P 500 volatility skew chart below (from www.livevol.com) provides estimates for implied volatility for S&P 500 options at different strike prices that expire on April 3, 5, 7, 19, 12, 13, 17 19, 21, 24, 26, 26, and on later dates.
SPXW options can provide opportunities for investors to implement more targeted buying, selling or spreading strategies. SPXW options may help investors efficiently take advantage of market events, such as earnings, government reports and Fed announcements. To learn more, please visit www.cboe.com/SPXW.