ISE SINdex

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International Securities Exchange offers options on a cash-settled ISE SINdex. This ISE proprietary index, as its name implies, includes owners and operators of casinos and gaming facilities, producers of beer and malt liquors, distillers, vintners and producers of other alcoholic beverages, and manufacturers of cigarettes and other tobacco products.

Related SINdex instruments

Additionally, the U.S. Futures Exchange (USFE) listed a futures contract on the ISE SINdex (FSIN) in 2007.[1]

Components, capitalization and weighting

With 30 component stocks[2], including Anheuser-Busch, Bally Technologies, Vector Group, Brown-Forman Corp. and MGM Mirage, the ISE SINdex attempts to capture at least two-thirds of the entire industry’s market capitalization. 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 25% at semi-annual reviews. Quarterly rebalancing events are used to “re-set” the weighting of each component so each component has an equal influence on the index performance.


ISE SINdex Option Contract Overview

Full specifications can be found on 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 SINdex 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 Homebuilders Index.


USFE ISE SINdex Futures Contract Overview

Underlying: ISE SINdex™ 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 30 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.