Benefits of S&P 100 Index Options
- Large Contract Size
- Trade S&P 100 Index options with a $100 multiplier
- Cash Settled
- Trading account is credited/debited in cash, not ETF shares
- Mixed Exercise
- American (OEX) or European (XEO)
- 60/40 Tax Treatment
- Capital gains may benefit from 60/40 tax treatment*
Historical Performance for S&P 100 Index Options
Trading S&P 100 Index Options
The Standard & Poor's 100 Index is a capitalization-weighted index based on 100 highly capitalized stocks from a broad range of industries. More than one billion S&P 100 options contracts have been traded since the Cboe launched the trading of options on the OEX, the first cash-settled securities product, on March 11, 1983. On November 24, 1997, the index had a 2-for-1 split.
To provide investors with added flexibility in managing large-cap U.S. equity exposure, a number of S&P 100 options are now offered:
- S&P 100 Index Options with American-style exercise (OEX)
- S&P 100 Index Options with European-style exercise (XEO)
- Quarterly European-style S&P 100 Index Options (XEO)
Trading Resources
*Under section 1256 of the Tax Code, profit and loss on transactions in certain exchange-traded options, including OEX, 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.