.jpg)
"CBOE is the leader in index option trading and we are pleased to offer our customers another alternative for portfolio management. The XEO gives investors the ability to further tailor their hedging vehicle to exactly meet their requirements," said Ed Provost, Executive Vice-President of Business Development at CBOE.
CBOE created the new product, XEO, in response to customer requests for an S&P 100 Index option that does not carry the possibility of early assignment.
In 1983, CBOE created the first exchange-traded index options, OEX®, based on the Standard & Poor's 100 Index. Since then, more than one billion OEX contracts have traded and OEX remains one of the most actively traded indexes in the world. OEX options are American-style exercise, which allows the holder to exercise the option at any time prior to expiration.
XEO options will trade exclusively at the CBOE and will be cleared by the Options Clearing Corporation, a triple-A rated clearing organization. Trading hours for the XEO and OEX options are 8:30 a.m. to 3:15 p.m. CST (Chicago time).
Index options can be used as a way to manage the risk of a broad market portfolio without disrupting the make-up of the portfolio. Investors can use index options to trade the broad market in one simple transaction. Buyers of options risk only the premium paid; thus the investment risk is both known and limited.
CBOE, the world's largest options marketplace and the 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.
Standard and Poor's®, S&P®, S&P 100® and S&P 500® are registered trademarks of The McGraw Hill Companies, Inc. and are licensed for use by the Chicago Board Options Exchange, Inc.OEX® is a registered trademark of the Chicago Board Options Exchange, Inc.XEO(SM) is a trademark of the Chicago Board Options Exchange, Inc.
