HuRLOs are OTC commodity options on which coastal region along the U.S. Atlantic or Gulf coast a hurricane will make landfall first. For example, the Dec 08 W2FBW HuRLO is automatically exercised and pays to the buyer if the second storm of hurricane-strength following the HuRLO product launch makes landfall in Broward County, Florida.
In 2008, seventy-nine different HuRLOs will be available in two series. The first series corresponds to the first storm of hurricane-strength to make landfall on the U.S. Atlantic or Gulf coast, and the second series corresponds to the second such storm to make landfall. If two hurricanes make landfall, then additional series will be listed.