Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, has announced it will list S&P 500 Index (SPX) Weeklys optionsSM with Tuesday expirations beginning Monday, April 18, and Thursday expirations beginning Wednesday, May 11.
These new listings build on the success of Cboe’s popular SPX Weeklys options, which currently include Monday, Wednesday and Friday-expiries, and will expand the product suite to provide expirations every trading day of the week.
The SPX options market is one of the most actively traded and liquid options markets across the globe. SPX Weeklys options are similar to standard monthly SPX options but shorter in term, with weekly expirations.
“When Cboe launched its first SPX Weeklys options contract in 2005, we introduced a completely new concept to the market that has since broadened the options landscape, and the way that options can be used to manage volatility risk,” said Arianne Adams, Senior Vice President and Head of Derivatives and Global Client Services.
“SPX Weeklys provide an efficient way for investors to execute targeted buying, selling or spreading strategies, and the growth we have seen in trading volumes is a testament to the tremendous utility of these products. With these new Tuesday and Thursday expiries, we are pleased to further expand our offerings as demand for short-dated options strategies has grown.”
Since launch, SPX Weeklys options have grown to become one of Cboe’s most-actively traded products. A total of 247 million SPX Weeklys options contracts were traded in 2021, with an ADV of more than 981,000 contracts, accounting for nearly 72 percent of total SPX options trading volume.
Cboe has received positive feedback from a broad range of market participants, including banks, broker-dealers, market makers and trading firms, that are existing users of SPX Weeklys options and expected to help contribute to the provision of liquidity in the new Tuesday and Thursday-expiring SPXW options at launch.
Paul Jiganti, Managing Director of Business Development at IMC, said: “The new Tuesday and Thursday weekly expirations are a great addition to Cboe’s highly successful and fast-growing SPX Weeklys product. Investors around the globe will now have 24/5 access to SPX options with an available expiration each and every day of the week. We expect the offering to appeal to retail and institutional investors looking to execute trading strategies with greater flexibility and precision. IMC looks forward to providing liquidity in this innovative and exciting product.”
Rutger Brinkhuis, CEO of Optiver US, said: “Tuesday and Thursday expiries are a natural next step for users of SPX weekly options. Market impacting events, such as elections and corporate earnings releases, can occur throughout the week. The additional expiries will allow investors to roll their positions on more trading days and more accurately manage their risk. This ability to fine-tune hedging or trading strategies has helped turn SPX weekly options into one of the most widely utilized and liquid short-term contracts in the options market.”
Benn Eifert, CIO of QVR Advisors, said: “Same-day options allow market participants like QVR to manage their gamma exposures more precisely and allow clean separation of overnight volatility risk from intraday volatility risk.”
Similar to SPX options, SPXW options are European-style options (no early exercise) and cash-settled (no delivery or assignment of shares) at expiration with P.M. settlement. The new Tuesday- and Thursday-expiring SPXW options will generally have the same characteristics as existing SPXW options, with the exception of their listing and expiration dates.
SPX Weeklys and standard SPX options trade during global and regular trading hours, allowing market participants globally to adjust their positions and manage risk around the clock, on every business day.
Cboe’s exclusive suite of S&P DJI Index options include S&P 500® Index (SPX) options, with P.M. settled weekly and monthly expiring contracts and standard options (monthly/third-Friday/A.M.- and P.M.-settled), Mini-S&P 500 Index (XSP) options, with P.M. settled weekly and monthly expiring contracts, and one-multiplier Nanos options, which are 1/100th the size of XSP options and available to trade based on the value of the SPX. Cboe also offers standard options on the S&P 500 ESG Index options and certain Select Sector Indices with monthly expiring contracts, in addition to options on the S&P 100® Index. To learn about Cboe’s SPX Weeklys options, please visit the website.