Weekly and End-of-Month Equity Index Options on Futures

Precision. Flexibility. Liquidity

With equity index options on futures available on a range of benchmark indices – including the S&P 500, NASDAQ-100 and Dow Jones Industrial Average – and in various expirations, CME Group provides market participants with flexible tools to fine tune their equity market exposure.

Trading shorter-term options has become especially popular, as short-term weekly and end-of-month (EOM) options complement traditional quarterly options and physically settle with the front-month futures contract.

Product and Execution Choice

The suite of options on S&P 500, E-mini S&P 500, E-mini NASDAQ-100 and E-mini Dow ($5) includes from 4 to 15 distinct option expirations each month.

  • Weekly contracts with Friday expirations
  • Weekly contracts with Wednesday and Monday expirations – available only for S&P 500 and E-mini S&P 500 futures
  • Quarterly contracts with Friday expirations
  • EOM options that expire on the last business day of the month

Launched July 10, 2017:

Options on E-mini Russell 2000 futures in quarterly, weekly and end-of month expirations.

Quarterly month options are American-style options, while weeklies and EOM are European-style, restricting the option buyer’s exercise rights to the expiration day.

Enjoy flexible execution via:

  • CME Globex electronic trading
  • Open Outcry for standard S&P 500 (SP) options
  • Large Order Execution (LOX) orders for SP options – with a minimum threshold 125 contracts
  • Committed Cross (C-Cross), a new CME Globex crossing method

Benefits

  • Choice: complementing the traditional third Friday Quarterly expiration, market participants have a recurring schedule of expirations to pin out targeted risk.
  • Liquidity: weekly and EOM options have seen significant growth since their inception, with excellent screen liquidity through expiration, especially for the near-the-money strikes where most of the activity occurs.
  • Gamma Trading: market participants can take advantage of the more rapid change in shorter-term options’ Gamma.
  • Lower Option Premiums: shorter-term to expiry options trade at lower premiums due to a lower time value component of the total option premium.
  • Time or Calendar Spread Opportunities: weekly and EOM options combined together may provide time spread or event driven opportunities, with greater precision and lower premium.

Event-Driven Trading

Weekly options provide a deep pool of liquidity for market participants to express views on market moving events and economic reports – from national elections to monthly employment and inflation reports – nearly around-the-clock.

On November 9, 2016, following the U.S. election, more than 380,000 E-mini S&P 500 Wednesday and Friday Weekly options traded before the U.S. market open. In comparison, more than 20,000 Wednesday and Friday Weekly options traded on average during non-U.S. hours in 2016.

About CME Group

As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. Comprised of four exchanges - CME, CBOT, NYMEX and COMEX - we offer the widest range of global benchmark products across all major asset classes, helping businesses everywhere mitigate the myriad of risks they face in today's uncertain global economy.

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More about Equity Options on Futures

Take advantage of round-the-clock liquidity and market depth with CME Equity Index Options on Futures.

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