Product Specifications - Index
Product Specifications
Unit of Trade
One contract equals $100 (the index multiplier) times the index level.
Premium Quotations
Stated in points and decimals. One point equals $100. Minimum tick for series trading below 3 is .05 ($5.00), and for all other series, .10 ($10.00).
Strike Price Intervals
Generally, index options are listed at 5 point intervals to bracket the current value of the index. Higher index values may result in larger strike price intervals. Contact each exchange for specific information. MID options are also listed in selective 2.50 point intervals in the nearest two months.
Generally, Index LEAPS® are listed in 2.50 point intervals. SPX options may be listed with up to 25 point intervals in the far-term months. OEX options are listed in 10 point intervals in the far-term month. SPL options are only listed in 25 point intervals. JPN options with more than one year to expiration are listed in 50 point intervals. Strike price intervals of 2.50 points may be available for WSX options.
Exercise Style
Index options are designated as either American-style or European-style. American-style options can be exercised on any business day prior to expiration. European-style options can be exercised only on the last trading day prior to expiration.
Expiration Dates
The Saturday immediately following the third Friday of the expiration month.
Exercise Settlement Price
The dollar difference between the index number and the strike price of the contract, multiplied by 100. (Note: See product specifications for each index as there my be different means of calculation).
EUR and JPN options have several unique exercise settlement characteristics which are described in their respective sections.
Exercise Settlement Time
Exercise notices tendered will result in the delivery of cash on the next business day.
Trading Hours
Broad-based indices - 9:30 a.m. to 4:15 p.m. (Eastern Time)
Industry specific indices - 9:30 a.m. to 4:00 p.m. (Eastern Time)
EUR - 8:30 a.m. to 11:30 a.m. (Eastern Time)
Minimum Customer Margin for Uncovered Writers
For broad-based indices: the dollar amount of the premium plus 15% of the current underlying index value (index number x $100) minus the amount by which the option is out-of-the-money (if any) with a minimum of the premium plus 10% of the current index value.
For industry-specific and narrow-based indices: the dollar amount of the premium plus 20% of the current underlying index value (index number x $100) minus the amount by which the option is out-of-the-money (if any) with a minimum of the premium plus 10% of the current index value.