ISE Homebuilders Index

From MarketsWiki
(Redirected from ISE Homebuilders)
Jump to: navigation, search
Nasdaq Banner 728x90.jpg

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.[1]

Components, capitalization and weighting

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

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.[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

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

  1. "ISE Indexes”. www/usfe.com.
  2. 2.0 2.1 Product Details. International Securities Exchange.