"With the addition of the Jumbo-DJX, CBOE continues to expand its line of products available to trade this important index and to meet a variety of trading styles and strategies. The contract's large size will provide investors with a cost-effective way to hedge a portfolio or to trade the Dow," said CBOE Chairman and CEO William J. Brodsky. "We are most pleased to broaden our on-going partnership with Dow Jones, while offering customers the excellent value afforded by this larger sized contract."
The Jumbo-DJX options will be based on 1/10th the value of the Dow Jones Industrial Average, with a multiplier of $100. That is, if the DJIA is at 10,480.45, the Jumbo-DJX would have a value of 1,048.04, and notional value of DXL options would be $104,804.50. The currently listed DJX options are 1/100th the value of the DJIA, would have a value of 104.80, and notional value of the DJX options would be about $10,480.
CBOE now offers a full suite of products based on the Dow Jones Industrial Average, and six other Dow Jones Indexes. In addition to DJX options, traded at CBOE since 1997, CBOE also offers options on the DIAMONDS (ticker symbol: DIA) exchange-traded fund, which is approximately 1/100th the value of the DJIA. All of these contracts offer investors exposure to the Dow Jones Industrial Average in one transaction, which can also offer the benefit of limited risk. Buyers of index options have pre-determined risk that is limited to the amount of premium paid.
DXL options will be cash-settled, with European-style exercise. There are no position limits, however, there are reporting requirements. The last trading day generally will be the Thursday prior to expiration. Trading hours will be 8:30 a.m. to 3:15 p.m. Central Time. Please visit: http://www.cboe.com/DXL for additional contract specifications.
CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the SEC. For additional information about the CBOE and its products, access the CBOE website at: http://www.cboe.com/
