Jumbo options

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Description[edit]

Jumbo options are options contracts based on 1,000 shares as opposed to the usual 100 shares that underlie most option contracts. (There are also mini options which have 10 shares per contract.)

History[edit]

In the late 1990's the American Stock Exchange offered what they called (at the time) "grand options" which, akin to jumbo options, were contracts based on 1,000 shares of the SPDR S&P MidCap 400 ETF Trust. Volume was never very high for these options and they were de-listed around 2000.

More recently the Boston Options Exchange (BOX) received permission from the SEC to offer jumbo options based on 1,000 shares of the SPDR S&P 500 ETF.[1] Trading for these contracts began on May 10, 2013.

Currently (as of May 13, 2013) both the International Securities Exchange (ISE) and NYSE Arca have decided to not list jumbo options due to liquidity concerns.[2][3]

References[edit]