Difference between revisions of "Standard & Poor's Index Options offered at CBOE"

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The Standard & Poor's 100 Index is a capitalization-weighted index of 100 stocks from a broad range of industries. The component stocks are weighted according to the total market value of their outstanding shares. The impact of a component's price change is proportional to the issue's total market value, which is the share price times the number of shares outstanding. These are summed for all 100 stocks and divided by a predetermined base value. The base value for the S&P 100 Index is adjusted to reflect changes in capitalization resulting from mergers, acquisitions, stock rights, substitutions, etc.
The Standard & Poor's 100 Index is a capitalization-weighted index of 100 stocks from a broad range of industries. The component stocks are weighted according to the total market value of their outstanding shares. The impact of a component's price change is proportional to the issue's total market value, which is the share price times the number of shares outstanding. These are summed for all 100 stocks and divided by a predetermined base value. The base value for the S&P 100 Index is adjusted to reflect changes in capitalization resulting from mergers, acquisitions, stock rights, substitutions, etc.
 
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Since 1983 investors have used, cash-settled S&P 100 options (ticker symbol OEX, with American-style exercise) to adjust their equity portfolio exposure. In February 2001 options on iShares(SM) S&P 100 (ticker symbol OEF, with American-style exercise) were introduced. In July 2001 the CBOE introduced cash-settled S&P 100 options (ticker symbol XEO) with European-style exercise. Some investors prefer this European-style feature, which means that XEO may be exercised only on the day just prior to expiration, and therefore XEO is not subject to the uncertainties involved with possible early exercise. Investors wishing to manage long-term exposure can use 1/5 value OEX LEAPS® or full-value XEO LEAPS®. <ref>{{cite web|url=http://www.cboe.com/micro/oex/introduction.aspx
Since 1983 investors have used, cash-settled S&P 100 options (ticker symbol OEX, with American-style exercise) to adjust their equity portfolio exposure. In February 2001 options on iShares(SM) S&P 100 (ticker symbol OEF, with American-style exercise) were introduced. In July 2001 the CBOE introduced cash-settled S&P 100 options (ticker symbol XEO) with European-style exercise. Some investors prefer this European-style feature, which means that XEO may be exercised only on the day just prior to expiration, and therefore XEO is not subject to the uncertainties involved with possible early exercise. Investors wishing to manage long-term exposure can use 1/5 value OEX LEAPS® or full-value XEO LEAPS®. <ref>{{cite web|url=http://www.cboe.com/micro/oex/introduction.aspx
|org=cboe.com|date=Nov. 12, 2007|name="S&P 100"}}</ref>
|org=cboe.com|date=Nov. 12, 2007|name="S&P 100"}}</ref>

Revision as of 17:51, 12 November 2007

The Standard & Poor's 100 Index is a capitalization-weighted index of 100 stocks from a broad range of industries. The component stocks are weighted according to the total market value of their outstanding shares. The impact of a component's price change is proportional to the issue's total market value, which is the share price times the number of shares outstanding. These are summed for all 100 stocks and divided by a predetermined base value. The base value for the S&P 100 Index is adjusted to reflect changes in capitalization resulting from mergers, acquisitions, stock rights, substitutions, etc. Template:Infobox Midpage Need Sponsor Right Since 1983 investors have used, cash-settled S&P 100 options (ticker symbol OEX, with American-style exercise) to adjust their equity portfolio exposure. In February 2001 options on iShares(SM) S&P 100 (ticker symbol OEF, with American-style exercise) were introduced. In July 2001 the CBOE introduced cash-settled S&P 100 options (ticker symbol XEO) with European-style exercise. Some investors prefer this European-style feature, which means that XEO may be exercised only on the day just prior to expiration, and therefore XEO is not subject to the uncertainties involved with possible early exercise. Investors wishing to manage long-term exposure can use 1/5 value OEX LEAPS® or full-value XEO LEAPS®. [1]

CBOE has a number of contracts based on the S&P 100, including:

  • OEX® - S&P 100 Index LEAPS -- American Exercise
  • WEEKLYS - Short-Term S&P 100 Index Options
  • XEO® - European-style S&P 100 LEAPS
  • QUARTERLYS - European-style S&P 100 (XEO) Index Options


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 shares. The impact of a component's price change is proportional to the issue's total market value, which is the share price times the number of shares outstanding. These are summed for all 500 stocks and divided by a predetermined base value. The base value for the S&P 500 Index is adjusted to reflect changes in capitalization resulting from mergers, acquisitions, stock rights, substitutions, etc.

CBOE has a number of contracts based on the S&P 500, including:

  • SPX - (Reduced-value) LEAPS
  • WEEKLYS - Short-Term S&P 500 Index Options


SML - S&P® SmallCap 600 Index Options


References[edit]

  1. "S&P 100". cboe.com.