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Daily Price Action: E-mini S&P 500
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CBOE launching S&P 500 index range options

Trading begins on Tuesday, Aug. 28

By Press Release

August 22, 2012 • Reprints

The following is from CBOE...

Chicago Board Options Exchange, Incorporated (CBOE) announced today that it will launch trading in a new type of S&P 500® Index options contract, known as CBOE S&P 500 Range options (ticker: SRO), beginning on Tuesday, August 28. 

CBOE Range options were designed to provide individual investors with a lower-risk, lower-cost way to trade S&P 500 Index options. 

SROs pay an exercise settlement amount if the settlement value of the underlying index at expiration selected by the investor falls within a specified "range length." The range length for SROs will be set at 70 S&P 500 Index points.   

SRO payouts work as follows: If the S&P 500 Index settlement value falls within the middle 50 points of the 70-point range, the payout for the option will be $1,000.   If the S&P 500 Index settlement value falls within the 10 points on either side of the 50-point range, the payout amount will decrease linearly (e.g., positive payout will be between $999 to $1) to zero.

"Range options give investors with an outlook on S&P 500 Index prices a new way to gain exposure to the market -- with less need for price precision,"  CBOE Chairman and CEO William J. Brodsky said.  "The new contract brings another dimension to our extensive S&P 500 Index option complex. Like SPX, SPX Weeklys and SPXpm, Range options provide a unique way for our customers to trade the S&P 500. Each of these products underscores CBOE's commitment to develop new and innovative products that address the diverse needs of investors."

For more information on CBOE S&P 500 Range options, see www.cboe.com/SRO.

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S&P 500 2458CBOE 207Brodsky 71William J. Brodsky 29Chicago Board Options Exchange Incorporated 8Sro 2range options 1

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
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    • Options
    • Regulation
    • Technology
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    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
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    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
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