- Cboe Global Markets (CBOE, Financial) has launched S&P 500 Equal Weight Index (EWI) options on April 14, 2025, under the ticker SPEQX.
- These options are based on 1/10th the value of the S&P 500 EWI and feature a cash settlement with European-style exercise.
- The notional value is approximately $63,200, with standard trading hours from 9:30 a.m. ET to 4:15 p.m. ET.
Cboe Global Markets, Inc. (CBOE) has officially commenced the trading of its new S&P 500 Equal Weight Index (EWI) options, identified by ticker SPEQX, as of April 14, 2025. These options are a part of Cboe’s strategic efforts to expand its derivatives offerings, providing additional diversification opportunities to traders by offering exposure to a broad-based U.S. equity market.
The S&P 500 EWI options represent a different approach compared to the traditional S&P 500 Index (SPX) options by allocating an equal weight of 0.2% to each constituent of the index. This equal-weight approach aims to address growing investor concerns about concentration risks, particularly as the S&P 500 becomes increasingly dominated by mega-cap stocks.
Key features of the SPEQX options include a standard contract multiplier of $100, leading to a notional value of approximately $63,200 as calculated on April 7. Investors can trade these options during regular trading hours, from 9:30 a.m. to 4:15 p.m. ET. Furthermore, these options offer a cash settlement approach along with a European-style exercise, thus mitigating risks associated with early assignment.
Cboe has initially introduced standard monthly options expiring on the third Friday and FLEX options on the SPEQX. While plans for PM-settled weekly options are in place, they remain pending pending regulatory approval. This development not only broadens the S&P product suite but also reinforces Cboe's position as a leading venue for U.S. equity index options trading.
