Cboe offers options on a diverse set of exchange-traded funds (ETFs) with ticker symbols such as DIA, SPY, QQQ, and IWM. Investors use these products for strategies such as hedging and income enhancement through the selling of covered calls or cash-secured puts.
Please note that options on ETFs have physical settlement at expiration (securities are delivered), whereas the index options have cash settlement at expiration and often are larger sized. The notional size of cash-settled S&P 500® (SPX) options is about 10 times larger than SPY options, and the notional size of NDX options is about 40 times larger than QQQ options.
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