#off Topic # $SPX Changes From CBOE
Conversion of SPXPM Options to Symbol SPXW
By Matt Moran
CBOE is planning to change the symbol for existing SPXPM option series to option symbol SPXW. The change is scheduled to be effective May 1, 2017. This conversion is designed to allow greater ease of access for those looking to place spreads from week to week. We have received some very positive feedback from institutional investors on this change to the symbol SPXW.
Here are key features that will apply beginning next month to the S&P 500® options expiring on the standard expiration dates (i.e., generally the third Friday of the month). The A.M.-settled options trading under root symbol SPX, and the P.M.-settled options trading under root symbol SPXW, will both be in the same underlying SPX options chain. The settlement symbol for the A.M.-settled SPX options is “SET”, while the settlement for the P.M.-settled SPXW options is based on the official SPX closing price on the expiration date.
For more details, visit www.cboe.com/SPXW.
AVERAGE DAILY VOLUME FOR S&P 500 OPTIONS TOPS 1.19 MILLION
As shown in the chart below, CBOE now offers S&P 500 options with expirations on Mondays, Wednesdays, Fridays, and month-ends, and the average daily volume for all the S&P 500 options was more than 1.19 million contracts in March 2017.
S&P 500 VOLATILITY SKEW CHART
The S&P 500 options volatility skew chart below (from www.livevol.com) provides estimates for implied volatility for S&P 500 options at different strike prices that expire on April 12, 13, 17 19, 21, 24, 26, 26, and on later dates.
SPXW options can provide opportunities for investors to implement more targeted buying, selling or spreading strategies. SPXW options may help investors efficiently take advantage of market events, such as earnings, government reports and Fed announcements. To learn more, please visit www.cboe.com/SPXW.