Broad Based Index Options
Full Value Russell 2000® Index (RUT)
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 Symbols: 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: 2008: 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., 1 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 & Guarantor: The Options Clearing
Corporation (OCC)
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.
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