Broad Based Index Options

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NASDAQ-100® Index Options (NDX)

Contract Specifications*

Description: The NASDAQ-100® Index is a capitalization-weighted index composed of 100 of the largest non-financial securities listed on the NASDAQ Stock Market. The index was created in 1985 with a base value set to 250 on February 1 of that year. After reaching a level of nearly 800 on December 31, 1993, the index level was halved on January 3, 1994. The NASDAQ Stock Market calculates and disseminates the NASDAQ-100® Index every 15 seconds during the trading day.

Trading Symbol: NDX

Settlement Value Symbol: NDS

LEAPS® Symbols: 2009: XHX, XUL

CUSIP® Number: 12490H

Exercise Style: European

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

Expiration Months: Up to three near-term months plus up to three additional months from the March quarterly cycle (March, June, September and December).

Settlement: Cash

Settlement of Option Exercise:
The exercise-settlement value, NDS, is calculated based on the NASDAQ Official Opening Price (NOOP) for each of the component securities on the last business day before the expiration date (usually a Friday). In the event a component security in the NASDAQ 100 Index does not have a NASDAQ Official Opening Price on Settlement Day, the closing price from the previous trading day will be used to calculate the Settlement Value. The exercise-settlement amount is equal to the difference between the exercise-settlement value, NDS, and the exercise price of the option, multiplied by $100. Exercise will result in delivery of cash on the business day following expiration.

Last Trading Day: Trading in NASDAQ-100® options will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.

Index Multiplier: $100.

Exercise (Strike) Price Intervals: 5 points.

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).

Position Limit 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 aggregate position in excess of 100,000 contracts in NDX (10 MNX or 10 of any other Mini-NDX options equal 1 NDX full value contract) 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.

Margin: Purchases of puts or calls with 9 months or less until expiration must be paid for in full. Writers of uncovered puts or calls must deposit / maintain 100% of the option proceeds* plus 15% of the aggregate contract value (current index level x $100) minus the amount by which the option is out-of-the-money, if any, subject to a minimum for calls of option proceeds* plus 10% of the aggregate contract value and a minimum for puts of option proceeds* plus 10% of the aggregate exercise price amount. (*For calculating maintenance margin, use option current market value instead of option proceeds.) Additional margin may be required pursuant to Phlx Rule 721 et seq.

Trading Hours: 9:30 a.m. to 4:15 p.m., EST/EDT (Philadelphia Time)

Issuer & Guarantor: The Options Clearing Corporation (OCC)

 

Position and exercise limits are subject to change.

*Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (“ODD”). Copies of the ODD are available from your broker, by calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, IL 60606. The information on this Website is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions which should be referred to for additional detail and are subject to changes that may not be reflected in the Website information. The Philadelphia Stock Exchange assumes no responsibility for any errors or omissions in the Website. No statement within the Website should be construed as a recommendation to buy or sell a security or to provide investment advice.

NASDAQ®, NASDAQ-100 ® and NASDAQ-100 Index® are registered trademarks of The NASDAQ OMX Group, Inc. (which with its affiliates are the “Corporations”) and are licensed for use by the Philadelphia Stock Exchange, Inc. in connection with the trading of options products based on the NASDAQ-100 Index®.  The options products have not been passed on by the Corporations as to their legality or suitability.  The options products are not issued, endorsed, sold, or promoted by the Corporations.  The Corporations make no warranties and bear no liability with respect to the options products.