Mini-SPX Index Options

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The Chicago Board Options Exchange (CBOE) introduced Mini-SPX index options (XSP), based on the Standard & Poor's 500 Stock Index, beginning October 25, 2005.

Mini-SPX options are 1/10th the value of CBOE's S&P 500 Index options (SPX), so if the S&P 500 Index is at 1400.00, the Mini-SPX would have a value of 140.0, and notional value covered by the Mini-SPX options (with a $100 multiplier) would be $14,000.

These cash-settled, European-style exercise index options trade on CBOE's Hybrid 2.0 Trading System, which includes Remote Market Makers.

CBOE announced on October 29, 2013 that it plans to list a Mini-SPX Index options (options symbol: XSP) contract with a new PM-settlement feature on Tuesday, November 5.[1]

The XSP Index hit an all-time daily closing high of 176.21 on October 28, 2013.


CBOE Mini-SPX Options Overview

Multiplier: $100

Trading Venue: CBOE Hybrid

Strike Price Intervals: Strike prices are set to bracket the Mini-SPX Index level in minimum increments of 1 point.

Premium Quotation: Stated in decimals. One point equals $100. Minimum tick for options trading below 3.00 is 0.05 ($5.00) and for all other series, 0.10 ($10.00).

Exercise Style: European - may be exercised only on the last business day before expiration.

Last Trading Days: Ceases on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.

Expiration Date: Saturday following the third Friday of the expiration month.

Expiration Months: Up to three near-term months plus up to three months on the March quarterly cycle.

Settlement of Option Exercise: Exercise will result in delivery of cash on the business day following expiration. The exercise settlement value, XSR, is calculated using the opening sales price in the primary market of each component security on the last business day (usually a Friday) before the expiration date. The exercise-settlement amount is equal to the difference between the exercise-settlement value and the exercise price of the option, multiplied by $100.

Position Limit: No position and exercise limits are in effect. Each member (other than a market maker) or member organization that maintains an end of day aggregate position in excess of 100,000 contracts in SPX and Mini-SPX (10 Mini-SPX options equal 1 SPX full value contract) for its proprietary account or for the account of a customer, shall report certain information to the Department of Market Regulation. The member must report information as to whether such position is hedged and, if so, a description of the hedge employed. A report must be filed when an account initially meets the aforementioned applicable threshold. Thereafter, a report must be filed for each incremental increase of 25,000 contracts. Reductions in an options position do not need to be reported. However, any significant change to the hedge must be reported.

Trading Hours: 8:30 a.m.- 3:15 p.m. Central Time (Chicago time).[2]

Resources

  1. XSP Index Hits Record High, as PM-Settled Mini-SPX Options to Launch Nov. 5. CBOE.
  2. "Mini S&P Index Options". {{{org}}}.