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[edit]
Additionally, the U.S. Futures Exchange (USFE) listed a futures contract on the ISE Homebuilders Index (FRUF) in 2007.[1]
Components, capitalization and weighting[edit]
With 23 component stocks,[2] 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[edit]
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[edit]
Full specifications can be found at the ISE web site.[2]
| 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[edit]
| Underlying | ISE Homebuilders™ Index |
| Quotation | Index Points |
| 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 |
| Screen Price | 9999.95 |
| Settlement | Cash Settled |
References[edit]
- ↑ "ISE Indexes”. www/usfe.com.
- ↑ 2.0 2.1 Product Details. International Securities Exchange.