ISE-Revere Natural Gas Index

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The cash-settled ISE-Revere Natural Gas Index (FUM) allows investors to take advantage of event-driven news and long-term trends in the natural gas industry. The securities selected for the index derive a substantial portion of their revenues from exploration and production of natural gas.


With 30 component stocks, the Index uses an equal-weighted methodology due to the diversity in market capitalization size among the component stocks. The resulting uniform weight distribution prevents a few large component stocks from dominating the index and potentially distorting an index return that is representative of an industry sector. Quarterly rebalancing events are used to “re-set” the weighting of each component so that each component has an equal influence on the index performance.


The Index is calculated and maintained by Standard & Poor’s based on a methodology developed by the ISE and Revere Data in consultation with Standard & Poor’s.

Price Interval Strike price intervals are at least $2.50.

Minimum Trading Increments The minimum trading increment for an options contract trading at less than $3.00 is $0.05. The minimum trading increment for an options contract trading at $3.00 or higher is $0.10.

Expiration Date Saturday following the third Friday of the expiration month.

Expiration Months Up to four near-term months followed by one additional month from the March quarterly cycle (March, June, September and December).

Exercise Style European. Options generally may be exercised only on the last business day before expiration.

Last Trading Day Trading will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.

Settlement Type A.M., cash settlement

Settlement Value Symbol WQW

Settlement Value The exercise-settlement value is calculated using the opening (first) reported sales price in the primary market of each component stock on the last business day (usually a Friday) before the expiration date. If a stock in the index does not open on the day in which the exercise-settlement value is determined, the last reported sales price will be used in calculating the exercise-settlement value. 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 expiration.

Position and Exercise Limits The position and exercise limits are 31,500 contracts on the same side of the market. Position and Exercise limits are subject to change.

Trading Hours 9:30 A.M. - 4:00 P.M. Eastern Time (New York time).