Chicago Board Options Exchange
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The Chicago Board Options Exchange (CBOE), located at 400 South LaSalle Street in Chicago, is one of the world's largest options exchanges with an annual trade that hovered around one billion contracts ath the end of 2007.[1]. CBOE offers options on more than 2200 companies, 22 stock indexes, and 140 exchange-traded funds (ETFs).
The exchange, regulated by the Securities and Exchange Commission, was established in 1973. It was the first exchange to list standardized exchange-traded stock options.
Its options contracts are cleared by the Options Clearing Corporation (OCC). As of approximately April 11, 2007, the Wall Street Journal estimates that globally the market capitalization of the derivatives markets (futures, options, swaps, etc.) exceeds 450 trillion dollars (while US stock exchanges have approximately 30 trillion and the rest of the worlds stock exchanges total to about another 20 trillion, to a total of about 50 trillion---while the global fixed income markets total to roughly 65 trillion).
In 2007 the CBOE started a Reg NMS compliant stock exchange called the CBOE Stock Exchange (CBSX) to compete with the NYSE, Nasdaq, and other regional exchanges. [2]
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[edit] Contracts offered
The CBOE (and other national options exchanges) offers options on the following, and others:
- S&P 500 Index (ticker SPX)
- S&P 100 Index (OEX)
- Dow Jones Industrial Average (DJX)
- NASDAQ-100 Index (NDX)
- Russell 2000 Index (RUT)
- S&P 500 Depositary Receipts - SPDRs (SPY)
- NASDAQ-100 Trust (QQQQ)
- Nasdaq Composite (ONEQ)
- S&P Latin American 40 (ILF)
- S&P MidCap 400 (MDY, IJH, and CBOE root symbol MID)
- Cohen & Steers Realty Majors Index (ICF)
- Wilshire 5000 (VTI)
- MSCI EMIF (EEM)
- MSCI EAFE (europe-asia-australia-far-east) (EFA)
- Dow Diamonds Trust (DIA)
- China 25 Xinhua/FTSE Index (FXI)
- Brazil San Paulo Stock Exchange (EWZ)
- Microsoft (MSFT)
- General Electric (GE)
- Altria (MO)
and thousands more securities (with calls and puts of multiple expirations and strike prices).
The CBOE calculates and disseminates the CBOE Volatility Index (VIX), the CBOE S&P 500 BuyWrite Index (BXM), and other indexes.
[edit] See also
Related: Call option, put option, moneyness, option time value, put-call parity, Black-Scholes, Black model, binomial options model, volatility smile, option adjusted spread, option screeners
Options: Stock option, warrant, foreign exchange option, bond option, options on futures, swaption, interest rate cap and floor, credit default option, binary option, real option, option (films), Options symbols, NBBO, Options linkage plan
Finance articles: Derivatives market, financial mathematics, financial economics, finance, list of finance topics, volatility Index
