DJX Options Product Specification
Options Based on Dow Jones Industrial Average (DJX)
- Index Description
- The Dow Jones Industrial Average is a price-weighted index composed of 30 of the largest, most liquid NYSE and NASDAQ listed stocks.
- Options are based on 1/100th of the DJIA level.
- Premium Quote
- Stated in decimals. One point equals $100. Minimum tick for options trading below 3.00 is 0.01 ($1.00) and for all other series, 0.05 ($5.00).
- Strike Prices
- Strike prices for options are set to bracket the index level in minimum increments of 1 point.
- Expiration Cycle
- Generally, one weekly and up to three near-term standard monthly options plus up to 3 months on the March quarterly cycle.
- Expiration Date
- Weekly (Fridays) and standard (third Friday) of the expiration month.
- Exercise Style
- European - DJX Index options generally may be exercised only on the expiration date.
- Last Trading Day
- Trading in DJX will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.
- Settlement Type
- Settlement Value
- Exercise will result in delivery of cash on the business day following expiration. The exercise-settlement value, DJS, is calculated using the opening sales price in the primary market of each component security on the expiration date. The exercise-settlement amount is equal to the difference between the exercise-settlement value and the exercise price of the option, multiplied by $100.
- Settlement Value Symbol
- Position and Exercise Limits
- No position and exercise limits are in effect. Each Trading Permit Holder (other than a market-maker) or TPH organization that maintains an end of day position in excess of 1 million contracts in DJX (DJX and DJX LEAPS) for its proprietary account or for the account of a customer, shall report certain information to the Department of Market Regulation. The TPH must report information as to whether such position is hedged and, if so, a description of the hedge employed e.g. stock portfolio current market value, other stock index option positions, stock index futures positions, options on stock index futures; and for customer accounts, provide the account name, account number and tax ID or social security number. Thereafter, if the position is maintained at or above the reporting threshold, a subsequent report is required on Monday following expiration and when any change to the hedge results in the position being either unhedged or only partially hedged. Reductions below these thresholds do not need to be reported.
Purchases of puts or calls with 9 months or less until expiration must be paid for in full. Writers of uncovered puts or calls must deposit / maintain 100% of the option proceeds* plus 15% of the aggregate contract value (current index level x $100) minus the amount by which the option is out-of-the-money, if any, subject to a minimum for calls of option proceeds* plus 10% of the aggregate contract value and a minimum for puts of option proceeds* plus 10% of the aggregate exercise price amount. (*For calculating maintenance margin, use option current market value instead of option proceeds.)
Additional margin may be required pursuant to Exchange Rule 12.10.
- Cusip Number
- Trading Hours
- 8:30 a.m. - 3:15 p.m. Central Time (Chicago time).