Tel Aviv Stock Exchange To Launch An Additional Weekly Series Of Options On The TA-35 Index - In Light Of The Success Of The Weekly Options On The TA-35 Index And Their Growing Popularity, A New Weekly Series Will Be Launched That Expires On Tuesdays, In Addition To The Thursday Expiration Series

TASE announces today the launch of a new weekly series of options on the TA-35 Index, in addition to the current weeklies that expire on Thursdays. Trading in the new series will commence on July 4, 2023.

The weekly options on the TA-35 Index were launched at TASE in 2013, and their use is constantly on the rise. Trading in the series that is closest to expiration concentrates more than 60% of the overall trading volume of options on the TA-35 Index. Consequently, these options hold most of the liquidity among the overall series in circulation.

Short-term options are trending globally, under the heading Zero Days to Expiration (0DTE). The launch of the additional weekly series is part of this trend and is designed to diversify the derivatives market and align it with international standards.

Short-term options create expiration opportunities and hedging possibilities in relation to both short term micro and macro-economic events. Their characteristics - other than the time of expiration - are identical to those of the monthly options. The short time to expiration and the time decay enable trading at low premiums and with a relatively low margin requirement.

Other than their expiration date, the new options are also similar to the existing weekly options: the final settlement price will be calculated on Tuesdays, compared to Thurdays in the existing weeklies.

The new options are suitable for a wide range of investors, including those looking to hedge short-term risks, with a low margin requirement. They will enable trading for an additional expiration day during the week, providing a clearer picture of the traders’ anticipation of volatility, and will also support trading and hedging against other trading events.

Alon Dangot, Derivatives Market Product Manager, said: “We monitor the global markets and follow the trading trends in order to create a more diversified and advanced local capital market. Within this framework and in light of the rising demand for short-term options, we are pleased to expand the variety of products on the derivatives market by launching an additional weekly series on TASE. The new options, which will provide additional investment, risk management and hedging tools for all types of market participants, join the trend of increased trading in short-term options, locally and internationally.