Historical Performance of Select Sector Indexes
Select Sector Index Options
|Select Sector Index Name||Option Symbol||Underlying Index Symbol||Settlement Symbol|
Quote Vendor Symbols
|Vendor||Materials Select Sector Index Example|
|Bloomberg, Factset, Morningstar, Six Group/Telekurs, Tradestation and Vela||Option & Underlying Index Symbol||SIXB|
|Underlying Index Symbol||SIXB.XO|
|Underlying Index Symbol||I:SIXB|
|Pico||Option & Underlying Index Symbol||$SIXB|
|Refinitiv/Thomson-Reuters Eikon||Option & Underlying Index Symbol||.SIXB|
|Refinitiv/Thomson-REDI||Option & Underlying Index Symbol||^SIXB|
|Refinitiv/Thomson-Reuters TDN T1/TDF||Option & Underlying Index Symbol||.SIXB-UT|
Why Trade Cboe Select Sector Index Options
Alternative Vehicle to Gain Exposure to U.S. Industry Sectors
Alternative Vehicle to Gain Exposure to U.S. Industry Sectors Cboe Select Sector Index options offer an alternative vehicle for asset managers who cannot hold options on exchange-traded products (ETPs) due to regulatory constraints.
Efficient Exposure to U.S. Industry Sectors
Index options allow investors to easily capitalize on wider industry trends by executing relative value, dispersion, or correlation strategies without picking individual stocks. Index options also allow investors to express a directional view without the operational overhead of shorting an ETF or stock basket.
Larger Notional Exposure
With a $100 multiplier, Cboe Select Sector Index options can offer investors an efficient way to gain sector exposure or implement sector rotation strategies. Plus, larger notional size may mean lower commission fees.
Cash Settled and No Early Exercise (European Style)
With index options, investors can avoid unwanted delivery of stocks or ETFs and the risk of assignment prior to expiration.
Potential Tax Advantages
Typically, index options are taxed using the 60/40 rule under section 1256 of the Tax Code where 40% of gains is taxed at the short-term rate and 60% at the long-term rate. Investors should consult with their tax advisors to determine how the profit and loss on any strategy will be taxed.1
Click here to read how other asset managers are implementing sector strategies.
S&P offers an interactive webpage that provides data on the Select Sector Indexes, including performance, constituents, methodology, market capitalization, and index fundamentals.
Trade on Cboe
Cboe Select Sector Index Options are available for trading on Cboe Options Exchange. Founded in 1973, Cboe was the first marketplace for trading listed options. For information for trading on Cboe Options Exchange including fee schedules, symbol directory, new listings, holiday calendar, and more, visit:
Trading of the Cboe Select Sector Index Options is also available on the Cboe Silexx execution management system. To learn more about Cboe Silexx, sign-up for the platform, or to take a free trial, visit:
Select Sector News
1Under section 1256 of the Tax Code, profit and loss on transactions in certain exchange-traded options, including SPX and SPXpm, 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.