Why come to the Cboe to participate in movements of the broad stock market?
S&P 100 option contracts are a proven financial instrument, with an established and active market. S&P 100 options are traded only at the Cboe Options Exchange, the world's first and largest options exchange. S&P 100 options are cleared by the Options Clearing Corporation, which has received a triple-A credit rating. More than one billion S&P 100 contracts have been traded since the Cboe launched the trading of OEX, the first cash-settled securities product, on March 11, 1983.
Is the settlement for S&P 100 options American-style or European-style? Prior to 2001, S&P 100 options were American-style only. This means they can be exercised on any business day prior to expiration. However, most other index options are European-style, meaning that they may be exercised only during a specified period of time just prior to its expiration. In 2001 Cboe introduced European-style S&P 100 options (XEO), so that customers will be offered both American- and European-style S&P 100 options. S&P 100 options, available in each of the four nearby months, expire on a monthly basis. The expiration date is the Saturday immediately following the third Friday of the expiration month until February 15, 2015. On and after February 15, 2015, the expiration date will be the third Friday of the expiration month. Settlement value is tied to the S&P 100 at expiration or to the value of the Index when the option is exercised. This value is calculated by Standard and Poor's. OEX options are cash-settled. This means that cash is delivered at settlement, not securities.