Full Value Russell 2000® Index (RUT)

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Contract Specifications*

Description: The Russell 2000® Index is designed to measure the performance of the bottom 2,000 companies from a universe of the 3,000 largest stocks in the U.S. The index is capitalization-weighted and includes only common stocks belonging to corporations domiciled in the U.S. and its territories and traded on the NYSE, Nasdaq or the AMEX. The Russell 2000® Index is adjusted once per year, in June, to reflect changes in rankings and shares outstanding. One Full Value Russell 2000® Index option contract is equivalent to ten Reduced Value Russell 2000® Index option contracts.

Trading Symbol: RUT

Alternate Symbol: RUW, RUY, RUZ
If you are unable to obtain a listing for a strike price under the trading symbol, use the alternate symbols.

Settlement Value Symbol: RLS

LEAPS® Symbol: 2009: YQV

CUSIP® Number: 124835 10 9

Exercise Style: European—may be exercised only on the last business day before expiration.

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

Expiration Months: Up to three near-term months followed by three additional months from the March quarterly cycle. LEAPS® and FLEX® options may be available.

Settlement: Cash

Settlement Value for Expiring Contracts: The exercise settlement value is calculated using the opening (first) reported sales price in the primary market of each component stock on the last business day (usually a Friday) before expiration date. In the event that a stock in the index does not open on the day in which the exercise settlement value is determined, the last reported sales price in the primary market will be used in calculating the exercise settlement value. The exercise settlement amount is equal to the difference between the exercise settlement value 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 will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise settlement value is calculated.

Index Multiplier: $100 (i.e., one contract = index value x 100)

Index Value Calculation: Capitalization-Weighted:

Total Capitalization of Index
Base Market Divisor

Exercise (Strike) Price Intervals: The Exchange shall determine fixed-point intervals of exercise prices for index options. Generally, the exercise (strike) price intervals will be no less than $5. However, the Exchange may determine to list strike prices at no less than $2.50 intervals if the strike price is less than $200 for listed indexes, and in response to demonstrated interest or specialist request.

Premium Quotation/Minimum Trading Increment: 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 Limits: There are no position limits for full value options on the Russell 2000® Index ("Full Value Russell 2000® Options") ("RUT") and for one tenth (1/10th) value options on the Russell 2000® Index ("Reduced Value Russell 2000® Options") ("RMN") (PHLX Rule 1079 and PHLX Rule 1001A). However, there is a reporting requirement for PHLX members and member organizations who maintain in excess of 100,000 RUT non-FLEX option contracts on the same side of the market.

Margin: 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).

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

Issuer and Guarantor: The Options Clearing Corporation (OCC)

Find out more about the Russell 2000 Index (including index components)

 

Copyright (c) Russell Investment Group 2007. All rights reserved.

*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.