SOURCE: Chicago Board Options Exchange

September 09, 2005 03:01 ET

CBOE Creates "Weeklys": First Short Term Options Will Launch on Friday, October 28, 2005; Based on SPX

CHICAGO, IL and BUERGENSTOCK, SWITZERLAND -- (MARKET WIRE) -- September 9, 2005 -- The Chicago Board Options Exchange (CBOE) today announced that it will launch a new type of option, "Weeklys," on Friday, October 28, 2005. Weeklys will have a life of one week, listing on a Friday, and expiring the following Friday, thus providing an efficient way to trade options specifically around certain news or events -- such as economic data or earnings announcements.

The first Weekly option contract to be listed will be based on the Standard & Poor's 500 Stock Index (SPX), will open on Friday, October 28, and will expire the following Friday, November 4. New series will be listed each Friday, expiring the following Friday, except that no Weeklys will be listed that would expire on the third Friday of each month (expiration week for standard options). CBOE will soon announce Weeklys on other classes.

"As the leader in product innovation -- from the first listed options contract, to Index options and LEAPS, CBOE has created a number of significant 'firsts.' Weeklys will join that list as a truly significant new concept that has been brought to market by CBOE. Weeklys will forever change, and broaden, the options landscape and the way options are used," said CBOE Chairman and CEO William J. Brodsky. "CBOE's creation of Weekly options is one of the great new products to be brought to the market."

"CBOE's Weeklys offers an innovative way for customers to efficiently take advantage of news driven market moves and short term trading strategies," said CBOE Vice Chairman Edward T. Tilly. "Weeklys will build on the liquidity provided by CBOE's deep pool of experienced and well capitalized Index traders, and will add a whole new dimension to the already versatile option product."

In general, Weeklys will have the same contract specifications as standard options, except for the expiration date and time to expiration. Initially, no more than five strike prices will be listed per class, per expiration (two in-, one at-, and two out-of-the-money strike prices), and no new series will be added between listing and expiration.

SPX Weeklys will be European-style exercise and will offer the same continuous, two-sided quotes as standard options. There are no position or exercise limits; however, reporting requirements apply.

CBOE, the world's largest options exchange and creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, visit the CBOE website at:

CBOE®, Chicago Board Options Exchange®, and LEAPS® are registered trademarks of Chicago Board Options Exchange, Incorporated. SPX(SM) is a service mark of Chicago Board Options Exchange, Incorporated. S&P® and S&P 500® are registered trademarks of the McGraw-Hill Companies, Inc. and are licensed for use by the Chicago Board Options Exchange, Incorporated pursuant to a License Agreement.

Contact Information

  • CBOE Contacts:
    Lynne Howard-Reed
    (312) 786-7123
    Email Contact

    Gary Compton
    (312) 786-7612
    Email Contact

    Carol Kennedy in Burgenstock