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| Cboe Index Options | ETF Options | |||
|---|---|---|---|---|
| NanosSM | MINI-SPX (XSP®) | SPX® | VERSUS | SPDR ETF (SPY) |
| 1/100th of XSP | 1/10th of SPX | 2 | Contract Size | 1/10th of SPX |
| $1 | $100 | $100 | Contract Multiplier | $100 |
| $450 | $45,000 | $450,000 | Approx. Notional Size (if S&P 500 is $4,500) | $45,000 |
| Trading account credited or debited in cash | Settlement Type | Delivery of underlying shares | ||
| European style, exercised at expiration, no risk of early exercise or assignment | Exercise Style | American style, can be exercised or assigned prior to expiration | ||
| Capital gains may benefit from 60% / 40% tax treatment* | Tax Treatment | Standard short- and long-term tax rules | ||
| Standard market trading hours | Global trading hours available** | Extended Trading Hours | Standar market trading hours | |
| Settlement and exercise style eliminate potential economic and tax risk for writers | Certainty of Settlement | After market contract assignment may result in unplanned residual positions | ||
* Under section 1256 of the Tax Code, profit and loss on transactions in certain exchange-traded options, including SPX Options, are entitled to be taxed at a rate equal to 60% long-term and 40% short-term capital gain or loss, provided that the investor involved and the strategy employed satisfy the criteria of the Tax Code. Investors should consult with their tax advisors to determine how the profit and loss on any particular option strategy will be taxed. Tax laws and regulations change from time to time and may be subject to varying interpretations.
** Global Trading Hours (GTH) The trading hours for options on the SPX, SPXW (SPX Weeklys and SPX End-of-Month), and XSP (Mini-SPX) begin at 8:15 p.m. Eastern time and end at 9:25 a.m. Eastern time. Curb session begins at 4:15 p.m. Eastern time and ends at 5:00 p.m. Eastern time. Please visit the Global Trading Hours page for more details.
There are important risks associated with transacting in any of the Cboe Company products discussed here. Before engaging in any transactions in those products, it is important for market participants to carefully review the disclosures and disclaimers contained at: Disclosures and Disclaimers Related to Cboe Products and Services. These products are complex and are suitable only for sophisticated market participants. In certain jurisdictions, Cboe Company products are only permitted for investment professionals, certified sophisticated investors, or high net worth corporations and associations. These products involve the risk of loss, which can be substantial and, depending on the type of product, can exceed the amount of money deposited in establishing the position. Market participants should put at risk only funds that they can afford to lose without affecting their lifestyle.
