Cboe offers End-of-Month options series (EOM) for its SPX options. SPX EOM
options feature expiration dates that fall on the last business day of the
month, as opposed to the standard third Friday of the month expirations. SPX EOM
options allow asset managers to more precisely match SPX option expirations to
end-of-month fund cycles and fund performance periods.
End-of-Month S&P 500 Index Options expire on the last business day of each
month. End-of-Month S&P 500 Index Options are PM-settled; that is, their
exercise settlement value is based on the closing level of the S&P 500 Index on
the day the options expire.
The Standard & Poor's 500 Index is a capitalization-weighted index of 500 stocks
from a broad range of industries. The component stocks are weighted according to
the total market value of their outstanding "free float" shares.
Up to twelve (12) consecutive End-of-Month contract months may be listed, each
expiring in less than one year.
Strike Price Intervals:
No less than 5 points. Strike price intervals shall be the same as standard SPX
In-, at- and out-of-the-money strike prices are initially listed. New series are
generally added when the underlying trades through the highest or lowest strike
Stated in decimals. One point equals $100. Minimum tick for options trading
below 3.00 is 0.05($5.00) and for all other series, 0.10 ($10.00).
European. End-of-Month S&P 500 Index options generally may be exercised only on
the expiration date.
The last business day of the expiring contract month.
Last Trading Day:
Trading in End-of-Month S&P 500 Index options will ordinarily cease on the
business day on which the options expire.
Settlement of Option Exercise:
End-of-Month S&P 500 Index options are PM-settled. The exercise-settlement value
is calculated using the last (closing) reported sales price in the primary
market of each component stock on the last business day (the expiration date) of
the month. The exercise-settlement amount is equal to the difference between the
exercise-settlement value and the exercise price of the option, multiplied by
$100. Exercise will result in delivery of cash on the business day following
As with SPX options, there are no position limits for End-of-Month S&P 500 Index
Margins would match those of standard options on the S&P 500 Index. Uncovered
writers must deposit 100% of the option proceeds plus 15% of the aggregate
contract value (current index level multiplied by $100) minus the amount by
which the option is out-of-the-money, if any. Minimum margin is 100% of the
option proceeds plus 10% of the aggregate contract value. Long puts or calls
must be paid for in full.
Extended Hours: 2:00 a.m. to 8:15 a.m. Central time (Chicago time)
Regular Hours: 8:30 to 3:15 p.m. Central time; except that on their expiration
date, expiring End-of-Month S&P 500 Index options close trading at 3:00 p.m.
All non-expiring End-of-Month S&P 500 Index options will continue
to trade until 3:15 p.m. Central time.