OK, Here’s How to Trade a Nano

April 19, 2022

You can run a world record pace and still lose the race if you begin in the wrong place.

Weird metaphor, but… if you wanna trade Nanos, let’s make sure you start right.

There’s a ton to cover, but here’s a good ol’ Top 5.

​Maybe it’s just me, but I say we start with number… one.

#1 – Find ‘em On Your Trading Platform:

Begin by finding the dang things. No bloodhounds needed, Nano options are listed under the ticker "NANOS" and are based on the S&P 500 Index*. 

#2 – Pick a Trading Strategy:

Now it’s time to look deep, deep inside. Maybe find a couch and lie down, then think to yourself, “Hey self, why am I trading a Nano? What’s the goal here, self?” The S&P 500 Index is a unique beast – be honest about what you expect from it. Are you game-planning how a Nanos trade PLUS your market expectations is gonna play out?

#3 – Choose Your Contract, Strike & Expiration:

Now that you’re in touch with your inner options trader and you’d like to move forward with a trade, it’s time to pick a few things:

— a call or put

— a contract price

— a strike price

— and an expiration that lines up with your strategy

Choose wisely, grasshopper. ​

#4 – Buy Nanos!:

Okay so, if your strategy is to buy a Nano, this is when that would happen. Exciting. Upon its expiration, you'll know how your strategy performed.​

 See results faster than a sneeze through a screen door… whatever that means, my grandpa used to say it.

#5 – Tweak Your Game Plan:

At this point, you’re pretty much Nano-ing it up. If you want, continue using Nanos and uncovering snazzy new trading strategies.

 Good luck, you options trader person you!

*Nanos trade on Cboe as a $1 multiplier option (versus a $100 multiplier for standard options) on the Mini-S&P 500 Index, which is 1/10th the value of the S&P 500 Index.

Options are not suitable for all investors. Before trading Nanos, you should discuss with your broker whether trading Nanos is right for you and review the Characteristics and Risks of Standardized Options (or Options Disclosure Document) regarding risks associated with trading options.

Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (also referred to as the Options Disclosure Document or ODD). Copies of the ODD are available from your broker or from The Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 ([email protected]). The information in this document is provided for general education and information purposes only. No statement(s) within this document should be construed as a recommendation to buy or sell a security or to provide investment advice. Supporting documentation for any claims, comparisons, statistics, or other technical data in this document is available by contacting Cboe Global Markets at www.cboe.com/contact. Past performance is not predictive of future returns. Cboe®, Cboe Global Markets®, Cboe Volatility Index®, FLEX®, VIX®, and XSP® are registered trademarks and NanosSM, Nanos by CboeSM, Cboe NanosSM, Nanos OptionsSM, and Options InstituteSM are service marks of Cboe Exchange, Inc. or its affiliates. S&P 500® and SPX® are registered trademarks of Standard & Poor’s Financial Services, LLC and have been licensed for use by Cboe Exchange, Inc. All other trademarks and service marks are the property of their respective owners. © 2022 Cboe Exchange, Inc. All rights reserved.