The Mini-Russell 2000 Index (ticker symbol RMN) is based on 1/10th the value of the Russell 2000 Index. The Russell 2000 Index (ticker symbol RUT) is designed to measure the performance of the bottom 2,000 companies from a universe of the 3,000 largest stocks in the U.S., which represents approximately 8% of the total market capitalization of the Russell 3000 Index.
CBOE formulated reduced-value options on the Russell 2000 Index in response to investor demand for smaller, retail-sized, index options with point-and-click functionality. CBOE will continue to offer RUT options, based on the full value of the Russell 2000 Index, as well as options on the iShares Russell 2000 Index Exchange Traded Fund (IWM), and options on 12 other Russell Indexes.
RMN will be European-style exercise, cash settled options, based on 1/10th of the value of the RUT Index, and will trade on the March expiration cycle, with introductory expirations in January, February, March, June and September. LEAPS with expirations up to five years in the future may also be listed. Initial strike prices will range from 50 to 75, in 2.5 point increments. The aggregate RMN and RUT position and exercise limits for options and LEAPS is 500,000 contracts on the same side of the market, with no more than 300,000 in the near-term month (in RMN terms). Certain position limit exemptions may be available.
More information on the RMN and RUT options, including contract specifications, is available at: http://www.cboe.com/micro/rut/introduction.aspx.
