Nasdaq-100 Index options

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In the security option arena, the Nasdaq-100 index option (NDX) is listed on the CBOE, AMEX, Boston Options Exchange, and International Securities Exchange. The contract is a modified market capitalization-weighted index representing 100 of the largest non-financial domestic and international issues listed on the Nasdaq Stock Market. The index was created in 1985 with a base value set to 250 on February 1 of that year. The index level subsequently was halved on January 3, 1994, after reaching a level of nearly 800 on December 31, 1993. Each of these four options exchanges list smaller Mini-Nasdaq-100 Index option‎s contracts (MNX), as well, which are 1/10 the size of NDX.[1]

Because these contracts are fungible, contract specifications at these exchanges mirror one another.


Product Specifications

Symbol NDX
Index Multiplier 100
Price Interval Strike price intervals are at least $2.50 for certain near-the-money series in near-term expiration months when the Full-size or Mini Nasdaq 100 Index is at a level below 200, and 5 point strike price intervals for other options series with expirations up to one year, and at least 10 point strike price intervals for longer-term options.
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.
Expiration Date Saturday following the third Friday of the expiration month.
Expiration Months Up to three near-term months followed by three additional months from the March quarterly cycle (March, June, September and December).
Exercise Style European
Last Trading Day Ordinarily ceases on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.
Settlement Type A.M., cash settlement
Settlement Value The exercise-settlement value, NDS, is calculated based on the Nasdaq Official Opening Price (NOOP) for each of the component securities on the last business day before the expiration date (usually a Friday). In the event a component security in the Nasdaq 100 Index does not have a Nasdaq Official Opening Price on Settlement Day, the closing price from the previous trading day will be used to calculate the Settlement Value. The exercise-settlement amount is equal to the difference between the exercise-settlement value, NDS, and the exercise price of the option, multiplied by $100. Exercise will result in delivery of cash on the business day following expiration.
Position and Exercise Limits There are no position and exercise limits on the Full-Size (NDX). The Mini (MNX) position and exercise limits are 750,000 contracts on the same side of the market. Position and Exercise limits are subject to change.
Trading Hours 9:30 A.M. - 4:15 P.M. Eastern Time (New York time).


References

  1. Product Details. International Securities Exchange.


See Also