CBOE weeklys
From MarketsWiki
In October 2005 CBOE introduced a new type of option called "Weeklys" [1] -- one-week options versus traditional options that have a life of months or years.
Generally, Weeklys have the same contract specifications as standard options, except for the time to expiration. They offer the same continuous, two-sided quotes as standard options.
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Weeklys on Four Classes
As of March 24, 2006, CBOE offers four Weeklys classes:
- SPX Weeklys: One-week, European-style options on the S&P 500 index with Friday A.M. settlement (last day of trading is a Thursday)
- XSP (Mini-SPX) Weeklys: A smaller sized (1/10th) version of SPX Weeklys traded on the CBOE Hybrid Trading System
- OEX Weeklys: One-week, American-style options on the S&P 100 index with Friday P.M. settlement (last day of trading is a Friday)
- XEO Weeklys: A European-style version of OEX Weeklys
When Are Weeklys Listed and Not Listed?
New series for Weeklys are listed each Friday and expire the following Friday. However, CBOE does not list new Weeklys that would expire during the expiration week for a standard options (the third Friday of each month). In other words, CBOE would not list new Weeklys on the 2nd Friday of a month and does not trade Weeklys during the following, standard expiration week until Friday of that week.
Ticker Symbols for Weeklys are Different
Ticker symbols for Weeklys differ from traditional options contract symbols, with letters identifying the Weekly cycle. For example, the symbol for SPX Weeklys for the first week of the month is JXA, the symbol for the second week is JXB, etc.). [2]
References
- ↑ "CBOE Weeklys Microsite". CBOE. Retrieved on Nov. 4, 2007.
- ↑ "CBOE Weeklys Microsite". CBOE. Retrieved on Nov. 4, 2007.
