ISE Semiconductor Index

International Securities Exchange offers options on the ISE Semiconductors Index (BYT). This ISE proprietary index includes manufacturers of semiconductors and related equipment. With 26 underlying stocks, it is a "modified capitalization weighted" index where individual weightings restrict single components to no more than 25 percent. Although the weighting limit is 30 percent for a single component, all components accounting for over 25 percent of the index market value are adjusted to 25 percent to avoid unscheduled rebalancing events.

The ISE Semiconductor Index is one of eight ISE industry indexes that also include: ISE Oil & Gas Services; ISE Integrated Oil; ISE Gold; ISE U.S. Regional Banks; ISE Biotech & Pharmaceuticals; ISE Homebuilders and ISE SINdex.

As of Nov. 1, 2007, there are 31 ISE index options listed.

Contract Overview

Full specifications can be found at the ISE web site.

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.