Index options provide investors with exposure to the broad market or a basket of stocks, in one transaction, that 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.
The eleven underlying Russell indexes are capitalization-weighted and include common stocks belonging to U.S. corporations. Russell estimates more than $850 billion of assets are benchmarked to Russell indexes.
Today, Monday, October 27, CBOE listed options on the Russell 1000 Index (RUI); Russell 1000 Growth Index (RLG); and Russell 1000 Value Index (RLV). Wolverine Trading was named the Designated Primary Market Maker ("DPM").
On Tuesday, October 28, CBOE will list options on Russell 2000 Growth Index (RUO) and Russell 2000 Value Index (RUJ), with Susquehanna Investment Group as the DPM.
On Wednesday, October 29, CBOE will list options on Russell 3000 Index (RUA); Russell 3000 Growth Index (RAG); and Russell 3000 Value Index (RAV), with Susquehanna Investment Group as the DPM.
On Thursday, October 30, CBOE will list options on Russell Midcap Index (RMC); Russell Midcap Growth Index (RDG); and Russell Midcap Value Index (RMV), with Susquehanna Investment Group as the DPM.
The options are European-style exercise, and settled in cash. The last trading day ordinarily will be the Thursday before expiration, with the settlement value calculated from the first (opening) prices on the day before expiration (usually Friday). The options will trade on the March expiration cycle.
Contract specifications, including expiration months and strike prices are available at www.cboe.com/OptProd/IndexOptions.asp. Trading hours for the Russell indexes are 8:30 a.m. to 3:15 p.m., Central time.
Russell, a global leader in multi-manager investment services, provides investment products and services in more than 35 countries. Russell manages more than $85 billion in assets and advises clients worldwide representing more than $1.6 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Washington, with additional offices in New York, Toronto, London, Paris, Singapore, Sydney, Auckland and Tokyo. For more information, go to www.russell.com.
CBOE, regulated by the Securities and Exchange Commission (SEC), is the creator of listed options, and the world's largest options marketplace. For additional information about the CBOE and its products, access the CBOE website at www.cboe.com.
CBOE, regulated by the Securities and Exchange Commission (SEC), is the creator of listed options, and the world's largest options marketplace. For additional information about the CBOE and its products, visit the CBOE website at www.cboe.com.
Following is a brief description of the Russell Indexes noted in this release:Russell 1000® Index (RUI) measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the investable U.S. equity market.
Russell 1000® Growth Index (RLG) measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Value Index (RLV) measures the performance of those Russell 100 companies with lower price-to-book ratios and lower forecasted growth values.
Russell 2000® Growth Index (RUO) measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.
Russell 2000® Value Index (RUJ) measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.
Russell 3000® Index (RUA) measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.
Russell 3000® Growth Index (RAG) measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth Indexes.
Russell 3000® Value Index (RAV) measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value Indexes.
Russell Midcap® Index (RMC) measures the performance of the 800 smallest companies in the Russell 1000 Index, which represents approximately 26% of the total market capitalization of the Russell 1000 Index.Russell Midcap® Growth Index (RDG) measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000 Growth Index.
Russell Midcap® Value Index (RMV) measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000 Value Index.
