S&P 100 Index Options (OEX)

The CBOE Options on the S&P 100 Index, commonly known by the ticker symbol "OEX," are financial derivatives that allow investors to trade options based on the S&P 100 Index. This index is a capitalization-weighted index comprising 100 highly capitalized stocks from a diverse range of industries.

Rebranding of CBOE 100 to S&P 100

The original CBOE 100 Index was launched by the Chicago Board Options Exchange (CBOE) in 1983 as the first index option available for trading. This index was a significant innovation in the financial markets, offering investors a new way to hedge and speculate on the movements of a broad market index.

In 1983, the CBOE 100 Index was rebranded as the S&P 100 Index, marking the beginning of a long-standing partnership with Standard & Poor's. This rebranding aligned the index with the well-recognized S&P brand, which helped increase its prominence and acceptance among investors. The S&P 100 Index is a subset of the broader S&P 500 Index and comprises 100 of the largest and most established U.S. companies, making it a key benchmark for large-cap U.S. equities.

Products

The OEX options are designed to offer investors exposure to the S&P 100 Index, which includes 100 large-cap U.S. stocks. These options are traded exclusively on the CBOE and are available in both call and put varieties, allowing investors to take positions on the expected future movements of the index. The options are cash-settled, meaning that upon expiration, the difference between the option's strike price and the index's closing price is settled in cash.

Trading Venue

The OEX options are traded on the Chicago Board Options Exchange (CBOE), which is the largest options exchange in the United States. The CBOE provides a platform for trading a wide range of options products, including those based on stock indices, individual equities, and other financial instruments. The exchange's infrastructure supports high-volume trading and offers a range of tools and resources for investors.

CBOE Options on S&P 100 Index Overview

Multiplier: $100

Premium Quote: 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).

Strike Price Intervals: Five points. 10-point intervals in the far-term month.

Expiration Months: Four near-term months plus one additional month from the March quarterly cycle.

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

Exercise Style: American. OEX options generally may be exercised on any business day before the expiration date.

Last Trading Day: Trading in OEX options will ordinarily cease on the business day (usually a Friday) preceding the expiration date.

Position and Exercise Limits: No position and exercise limits are in effect. Each member (other than a market maker) or member organization that maintains an end of day position in excess of 100,000 contracts in OEX and OEX LEAPS 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.

CBOE has a number of other contracts based on the S&P 100, including:

• OEX® - S&P 100 Index LEAPS -- European Exercise
• WEEKLYS - Short-Term S&P 100 Index Options
• XEO® - European-style S&P 100 Index Options
• XEO® - European-style S&P 100 LEAPS
• QUARTERLYS - European-style S&P 100 (XEO) Index Options

References