End-of-month options on the S&P 500 Index provide a way to eliminate early assignment risk and uncertainty with European-style exercise. They also:

• Accommodate end-of-month accounting practices
• Limit downside risk and maximize upside potential while maintaining exposure to the key benchmark for large-cap U.S. stocks

Things to know:

• At expiration, CME Group calculates a special fixing price that determines which options are in-the-money.
  • The price is based on the weighted-average trading price of E-mini S&P 500 futures in the last 30 seconds (2:59:30 – 3:00:00) before the 3:00 p.m. options expiration.
  • This price is disseminated immediately using the symbol “ESF”
• In-the-money options are automatically exercised, while at- and out-of-the-money options are automatically abandoned
• Contrarian instruction is not allowed
• Dedicated market makers continuously quote competitive markets
• EOM options complement American-style quarterly and serial month options on S&P 500 futures
• Trading occurs via open outcry during regular trading hours and electronically on the CME Globex platform when the trading floor is closed
• CME Clearing matches and settles all trades and guarantees counterparty creditworthiness
• We also offer American-style options which be exercised at any time before contract expiration.