Chicago Board Options Exchange (CBOE)
The Chicago Board Options Exchange (CBOE) is the largest U.S. options exchange. CBOE was founded in 1973 as the first U.S. options exchange to offer standardized, listed options on an organized market.
CBOE offers equity, index and ETF options, as well as a number of proprietary products, including S&P 500 options (SPX) and CBOE Volatility Index (VIX) options.
CBOE operates a Hybrid Trading System, combining electronic and open outcry trading. CBOEdirect, CBOE's proprietary, electronic platform, also supports CBOE Futures Exchange (CFE), CBOE Stock Exchange (CBSX) and OneChicago.
An innovator in the industry, CBOE launched options on broad-based stock indexes after negotiating exclusive contracts on the S&P 100 Index (OEX) and the S&P 500 Index (SPX).
CBOE Holdings, Inc. ("CBOE Holdings") is the holding company for the Chicago Board Options Exchange, Incorporated ("CBOE") and other subsidiaries. CBOE Holdings began trading on NASDAQ on June 15, 2010, under the ticker symbol CBOE.
Broker-dealers and market-makers pay fees on either side of trades, while public customers trade without paying fees whether they are adding or removing liquidity.
Products and product innovations from CBOE through the years include:
Long-term Equity AnticiPation Securities (LEAPS)
LEAPS provide investors the ability to establish positions that can be maintained for a period of up to three years.
Flexible Exchange_® Options (FLEX Options)
FLEX Options are customized equity or index option contracts, which allow investors to specify key contract terms, including exercise prices, styles and dates.
CBOE Volatility Index (VIX) options.
The VIX is a key measure of market expectations of near-term volatility. Conveyed by S&P index options prices.
CBOE Binary Options on the S&P 500 Index (SPX) and the CBOE Volatility Index (VIX)
CBOE Binary Options are exchange-listed contracts that trade electronically through CBOEdirect. Binary Options are European-style contracts, with expiration and settlement at the same day/time as traditional options on the same underlying.
Credit Event Binary Options (CEBOs)
CEBOs are modified, European-style cash settled binary call options. Premium on CEBOs reflects the probability that a bankruptcy or credit event will occur prior to the contracts' expiration.
Weeklys SM Options.
Weeklys options are typically listed on Thursdays and expire the following Friday (Weeklys are not listed if they would expire on a 3rd Friday or on Quarterly options expiration day).
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The risk of loss in online trading of stocks, options, futures, currencies, foreign equities, and fixed Income can be substantial.
Options involve risk and are not suitable for all investors. For more information read the Characteristics and Risks of Standardized Options, also known as the options disclosure document (ODD). Alternatively, call 312-542-6901 to receive a copy of the ODD. Before trading, clients must read the relevant risk disclosure statements on our Warnings and Disclosures page. Trading on margin is only for experienced investors with high risk tolerance. You may lose more than your initial investment. For additional information about rates on margin loans, please see Margin Loan Rates. Security futures involve a high degree of risk and are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading security futures, read the Security Futures Risk Disclosure Statement. Structured products and fixed income products such as bonds are complex products that are more risky and are not suitable for all investors. Before trading, please read the Risk Warning and Disclosure Statement.