CBOE Announces Elimination Of Position Limits For Qualified Hedge Strategies

The Chicago Board Options Exchange (CBOE), the world's largest options exchange, today announced that it has eliminated position and exercise limits for certain hedged positions, including hedged Nasdaq-100 Index Tracking Stock (ticker symbol QQQ) option contracts. The eligible positions include many of the most popular hedge strategies, including buy-writes (also called covered calls), reversals, conversions, collars, boxes, and other strategies often used to reduce or eliminate risk. The rule change was approved by the Securities and Exchange Commission (SEC) and is now in effect.

For a complete list of exempt positions, including some Over-The-Counter (OTC) option strategies, please click here.

Requirements for firm proprietary and customer accounts to report to CBOE positions and hedge information in excess of specified thresholds are in effect.

Questions regarding position/exercise limits and reporting requirements should be directed to the CBOE Department of Market Regulation.

CBOE, the world's largest options marketplace and creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, access the CBOE site on the World Wide Web at http://www.cboe.com