FLEX® Index Options Specifications*

As NASDAQ OMX continues to build client synergies and efficiencies, it is in the process of migrating the Phlx.com website content into various NASDAQ OMX websites. As a first step of this initiative, FLEX Index Options Information has been migrated to the NASDAQtrader.com website. Please use this link http://www.nasdaqtrader.com/Micro.aspx?id=PHLXFlexProductspecs#io to access this information.

Underlying Security: Any index upon which options currently trade. However, prior to requesting a quote for a particular index option, the requesting member should first determine whether that index has been listed for FLEX trading. Such lists will be posted at the Corrections Post.

Type of Option: Put or call.

Strike (Exercise) Prices: May be specified in terms of a specific index value number or a percentage of the index value calculated as of the open or close of trading on the Exchange on the trade date.

Expiration Date: Any business day up to five years from the trade date, except that a FLEX® option may not expire on any day that falls on or within two business days of an expiration date for a non-FLEX® option. Note that the restriction does not apply to quarterly expiring index option expiration dates. For example, if Saturday July 18, represents the expiration date for July index options, FLEX® options may not be established to expire on Thursday, July 16, Friday, July 17, Monday, July 20 and Tuesday, July 21. Further, a FLEX® option may not be established to expire on the same day as the trade date.

Exercise Style: American or European.

Minimum Opening Transaction Size: If there is no open interest in the particular series when a Request for Quote (RFQ) is submitted, the minimum size of an RFQ is $10 million underlying equivalent value for broad-based index options and $5 million for narrow-based index options. If a particular series has open interest then the minimum size to open is $1 million underlying equivalent value.

Minimum Closing Transaction Size: The lesser of $1 million underlying equivalent value and the remaining size.

Position and Exercise Limits: FLEX® index options are subject to a separate position limit of 200,000 contracts on the same side of the market respecting broad-based index options and 36,000, 48,000 or 60,000 contracts respecting narrow-based index options, depending on the position limit tier determined pursuant to Rule 1001A(b)(i). However, positions in p.m.-settled FLEX® options shall be aggregated with positions in quarterly expiring options listed pursuant to Rule 1101A(b)(iv) on the same underlying index, if the FLEX® index option series expires at the close of trading on or within two business days of the last day of trading in each calendar quarter. Positions in FLEX® index options shall otherwise not be taken into account when calculating position limits for non-FLEX® index options.

Settlement: Cash.

 

*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.