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DOOMSM Put Options     www.cboe.com/DOOM

  • Deep Out-Of-The-Money Put OptionsSM

A credit derivative market alternative



DOOM and CEBO

For years, sophisticated investors have used listed options as alternatives to OTC-traded credit derivatives such as credit default swaps (CDS). CBOE is now highlighting "DOOMSM"or "Deep Out-Of-the Money" put options because investors are demanding listed alternatives now more than ever before. The following link DOOM Quick Reference Guide explains how DOOM Put Options and CDS are functionally similar, and provides several specific examples that compare the viability of DOOM Put Options to CDS. It also provides a list of potential names where investors may currently use DOOM Put Options and Credit Event Binary Options (CEBOs) in place of CDS. Below is a list of single-name entities that have equity DOOM puts and CEBOs listed on them. For additional information regarding CEBOs please refer to www.cboe.com/credit.


CDS Alternatives

Deep-Out-Of-Money Puts and Credit Event Binary Options (CEBOs)

January 2012 Equity Puts



Reference Name Ticker Stock Price @ Put Strikes CDS Spreads @
Equity CEBO 2/11/2011 Low %ATM 2/11/2011
AK STEEL CORPORATION AKS AKSC 16.34 2.5 15% 472.01
AMERICAN AXLE & MANUFACTURING, INC. AXL AXLC 14.32 2.5 17% 398.42
K. HOVNANIAN ENTERPRISES, INC HOV HOVC 4.49 2.5 56% 951.71
MBIA INC. MBI MBID 10.76 2.5 23% 789.18
CBOE Volatility Index (VIX)