Trade Up to Market Close With XSP

June 1, 2023

Unlike SPY and other ETF options, Cboe’s® Mini-SPX (XSPSM) index options give traders certainty on the final settlement value without the possibility of contra-exercise or assignment on expiration day. XSP is European style and cash settled, meaning there is no delivery of unwanted shares, lowering the risk that a broker will prevent a same day trade or force settlement before the close. XSP also offers additional benefits beyond those of SPY, including global trading hours allowing traders to react to market events around the clock.

Cash Settlement

Example: Both XSP index options and SPY ETF options close at 502.30 on March 1st

Certainly of Settlement

Example: Both XSP index and SPY ETF close at $502.30 on March 1st. Market moves higher to $503.50 after the market close.

No Risk of Early Exercise or Assignment

Potential Tax Savings*

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* Under section 1256 of the Tax Code, profit and loss on transactions in certain exchange-traded options, including SPX Options, are entitled to be taxed at a rate equal to 60% long-term and 40% short-term capital gain or loss, provided that the investor involved and the strategy employed satisfy the criteria of the Tax Code. Investors should consult with their tax advisors to determine how the profit and loss on any particular option strategy will be taxed. Tax laws and regulations change from time to time and may be subject to varying interpretations.

Global Trading Hours (GTH) The trading hours for options on the SPX, SPXW (SPX Weeklys and SPX End-of-Month), and XSP (Mini-SPX) begin at 8:15 p.m. Eastern time and end at 9:15 a.m. Eastern time. Curb session begins at 4:15 p.m. Eastern time and ends at 5:00 p.m. Eastern time. Please visit the Global Trading Hours page for more details.

There are important risks associated with transacting in any of the Cboe Company products or any digital assets discussed here. Before engaging in any transactions in those products or digital assets, it is important for market participants to carefully review the disclosures and disclaimers contained at:

These products and digital assets are complex and are suitable only for sophisticated market participants. These products involve the risk of loss, which can be substantial and, depending on the type of product, can exceed the amount of money deposited in establishing the position.

Market participants should put at risk only funds that they can afford to lose without affecting their lifestyle.