ISE Homebuilders Index
International Securities Exchange offers options on a cash-settled ISE Homebuilders Index (RUF). This ISE proprietary index includes residential construction companies and prefabricated house manufacturers. There is also a futures contract listed on the ISE Homebuilders Index listed on USFE.
Related ISE Homebuilder Index Products
Additionally, the U.S. Futures Exchange (USFE) listed a futures contract on the ISE Homebuilders Index (FRUF) in 2007.
Components, capitalization and weighting
With 23 component stocks, including Hovnanian Enterprises Inc., Pulte Homes, Inc., Lennar Corp., and D.R. Horton, the ISE Homebuilders Index attempts to capture at least two-thirds of the entire homebuilding industry’s market capitalization.
Capitalization and weighting
Due to the non-uniform weight distribution across entire industries, an equal-weighted methodology or a "modified market capitalization-weighted" methodology is used to adjust the weighting of component stocks, and individual component weightings are limited to no more than 30% of the weight of the index (this requirement must be met continuously throughout the year).
ISE Homebuilders Index Option Specifications
Full specifications can be found at the ISE web site.
|Trading hours||9:30 A.M. - 4:00 P.M. Eastern Time (New York time).|
|Expiration months||Four near-term months followed by one additional month from the March quarterly cycle (March, June, September and December)|
|Strike price intervals||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.|
The ISE Homebuilders Index is one of eight ISE industry indexes that also include: ISE Oil & Gas Services; ISE Semiconductor Index; ISE Integrated Oil; ISE Gold; ISE Semiconductors; ISE Biotech & Pharmaceuticals; ISE U.S. Regional Banks Index and ISE SINdex.
USFE Futures on ISE Homebuilders Index Specifications
|Underlying||ISE Homebuilders™ Index|
|Contract Size||$100 per Index Point|
|Minimum Tick Size||0.05|
|Minimum Calender Spread Tick Size||0.01|
|Outright Tick Value||$5|
|Minimum Size for Block Trade||50 contracts|
|Mistrade Parameters||10 ticks|
|Reportable Positions||200 contracts|
|Position Limits / Accountability||Limits at 25,000 contracts|
- ↑ "ISE Indexes”. www/usfe.com.
- ↑ 2.0 2.1 Product Details. International Securities Exchange.