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Component Issues, Weightings and Index Divisor | Original Index Components

PHLX Utility Sector^SM (UTY^SM)

The PHLX Utility Sector^SM (UTY^SM) is a capitalization-weighted index composed of 20 geographically diverse public utility stocks. UTY was set to an initial value of 200 on May 1, 1987; options commenced trading on September 22, 1987.

Contract Specifications*

Trading Symbol: UTY

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

CUSIP® Number: UTY - 692911

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 Cycle: Three months from the March, June, September, December cycle plus two additional near-term months (five months at all times).

Settlement: Cash

Settlement Value for Expiring Contracts: Based on the closing prices of the component stocks on the last Expiring Contracts: trading day prior to expiration (usually a Friday).

Last Trading Day for Expiring Contracts: The last business day (usually a Friday) prior to expiration.

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

Index Value Calculation:

Total Capitalization of Assigned Shares

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 customer interest or specialist request.

Premium Quotation: One point = $100. Thus a premium quote of 2 is $200. The minimum change in a premium under 3 is $5.00 and the minimum change in a premium of 3 or greater is $10.00.

Position Limits: 31,500 contracts on the same side of the market. Hedge exemptions are available

Margin: Uncovered writers must deposit 100% of the option proceeds plus 20% of the aggregate contract value (current index level multiplied by $100) minus the amount by which the option is out-of-the-money, if any. Minimum margin is 100% of the option proceeds plus 10% of the aggregate contract value. Long puts or calls must be paid for in full.

Trading Hours: 9:30 a.m. to 4:00 p.m. EST/EDT (Philadelphia Time)

Issuer & Guarantor: The Options Clearing Corporation (OCC)

Trading Example

An investor anticipates that utility stocks will remain relatively flat or trade within a very limited range. In April, the UTY is at a level of 279. The investor decides to sell 10 out-of-the-money June 295 calls at 1 1/2 (10 x $1.50 x 100 = $1,500). At expiration, the index is at a level of 287, and the calls expire worthless. The investor keeps the $1,500 from the sale.

Proceeds from sale of UTY calls Value of UTY calls at expiration 0	$ 1,500
	________
Profit	$ 1,500

HLX Utility Sector, UTY^SM are service marks of the Philadelphia Stock Exchange, Inc.

*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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PHLX Utility SectorSM (UTYSM)

Contract Specifications*

Trading Example

PHLX Utility Sector^SM (UTY^SM)