Benefits of SPX Options
- Cash Settlement & European Exercise
- Trading account credited/debited in cash, not ETF shares, and no risk of early assignment
- Global Trading Hours
- Unlike ETF options, SPX options begin trading at 3 A.M. Eastern time. View Global Trading Hours.
- Large Notional Size or Mini
- Trade standard S&P 500 Index options (SPX) or Minis (XSP) at 1/10th the size
- Contract Flexibility
- Choose A.M. or P.M.-settled contracts; standard, weekly or month-end expirations; or customize your own with FLEX
- Covered Margin Treatment
- Offset SPY or IVV ETF exposure on a "covered" basis in a margin account**
- 60/40 Tax Treatment
- Capital gains may benefit from 60/40 tax treatment*
Trading SPX Options
Comparison of SPX Option Products
Cboe offers a comprehensive suite of listed options on the S&P 500 Index, including both standard and mini contract size, A.M. and P.M.-settlement, and standard, weekly or month-end expirations. Investors can even customize the key contract specifications with FLEX® options.
|Options Chain||Root Ticker||Settlement||Settlement Date*||Settlement Type||Exercise Style||GTH Available**|
|SPX Options Traditional (AM-Settled on 3rd Friday of Every Month)|
|SPX Options Non-Traditional (PM-Settled on Various Expiration Dates)|
|SPX End-of-Month (EOM)||SPX||SPXW||PM-settled||Last Trading Day of Month||Cash||European||Yes|
|SPX Options - Mini (1/10th the Notional Size)|
|Mini-SPX Index Options (Weeklys Available)||XSP||XSP||PM-settled||Fridays||Cash||European||No|
|SPY Options - SPDR ETF|
|SPDR ETF Options (3rd Fridays, Weeklys, and Quarterlys)||SPY||SPY||PM-settled||Fridays or End of Quarters||Physical ETF||American||No|
* In the case of a holiday on the settlement date, the settlement date is moved back one business day (e.g. from Friday to Thursday), with the exception of Monday Weeklys, where the settlement date will move forward one business day (i.e. Monday to Tuesday). In addition, no SPX EOW, Wednesday Weeklys, or Monday Weeklys will be listed that would have an expiration date that coincides with the expiration date of a traditional SPX option or SPX EOM option.
** Global Trading Hours (GTH) The trading hours for options on the SPX, SPXW (SPX Weeklys and SPX End-of-Month), and SPXPM begin at 3:00 a.m. Eastern time and end at 9:15 a.m Eastern time. Please visit the Global Trading Hours page for more details.
Cboe offers more than 35 benchmark indexes that show the performance of hypothetical strategies that use SPX Index options. The chart below illustrates the relative performance of the Cboe S&P 500 BuyWrite Index (BXMSM) and the Cboe S&P 500 PutWrite Index (PUTSM) versus the S&P 500 Index. Visit Cboe Strategy Benchmark Indexes to see performance data and learn more.
Options-Based Benchmark Indexes: Performance, Risk and Premium Capture
Options Based Equity Strategies
Meketa Investment Group
Historical Performance of Put-Writing Strategies
Prof. Oleg Bondarenko
The inclusion of research not conducted or explicitly endorsed by Cboe should not be construed as an endorsement or indication of the value of any research.
*Under section 1256 of the Tax Code, profit and loss on transactions in certain exchange-traded options, including SPX, 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.
**Cboe Regulatory Circular RG15-183 notes that Cboe rules allow a short position in a cash-settled-index option established and carried in a margin account to receive covered margin treatment if the short option position is offset in the same account by an equivalent or greater position in an index-tracking ETF that is based on the same index that underlies the short option(s) and provided the investor's brokerage firm has such policies in place.
The information on this website is provided for general education and information purposes only. No statement(s) within this website should be construed as a recommendation to buy or sell a security or futures contract, as applicable or to provide investment advice. Supporting documentation for any claims, comparisons, statistics or other technical data in this website is available by contacting Cboe Global Markets.
Trading FLEX options may not be suitable for all options-qualified investors; the strategies discussed in this report should only be considered by investors with extensive prior options trading experience.