End-of-Month Options

Cboe offers End-of-Month options series (EOM) for its SPX options. SPX EOM options feature expiration dates that fall on the last business day of the month, as opposed to the standard third Friday of the month expirations. SPX EOM options allow asset managers to more precisely match SPX option expirations to end-of-month fund cycles and fund performance periods.

Contract Specification

End-of-Month S&P 500 Index Options expire on the last business day of each month. End-of-Month S&P 500 Index Options are PM-settled; that is, their exercise settlement value is based on the closing level of the S&P 500 Index on the day the options expire.
The Standard & Poor's 500 Index is a capitalization-weighted index of 500 stocks from a broad range of industries. The component stocks are weighted according to the total market value of their outstanding "free float" shares.
Contracts Listed:
Up to twelve (12) consecutive End-of-Month contract months may be listed, each expiring in less than one year.
Strike Price Intervals:
No less than 5 points. Strike price intervals shall be the same as standard SPX options.
Strike Prices:
In-, at- and out-of-the-money strike prices are initially listed. New series are generally added when the underlying trades through the highest or lowest strike price available.
Premium Quotation:
Stated in decimals. One point equals $100. Minimum tick for options trading below 3.00 is 0.05($5.00) and for all other series, 0.10 ($10.00).
Exercise Style:
European. End-of-Month S&P 500 Index options generally may be exercised only on the expiration date.
Expiration Date:
The last business day of the expiring contract month.
Last Trading Day:
Trading in End-of-Month S&P 500 Index options will ordinarily cease on the business day on which the options expire.
Settlement of Option Exercise:
End-of-Month S&P 500 Index options are PM-settled. The exercise-settlement value is calculated using the last (closing) reported sales price in the primary market of each component stock on the last business day (the expiration date) of the month. The exercise-settlement amount is equal to the difference between the exercise-settlement value and the exercise price of the option, multiplied by $100. Exercise will result in delivery of cash on the business day following expiration.
Position Limit:
As with SPX options, there are no position limits for End-of-Month S&P 500 Index options.
Margins would match those of standard options on the S&P 500 Index. Uncovered writers must deposit 100% of the option proceeds plus 15% of the aggregate contract value (current index level multiplied by $100) minus the amount by which the option is out-of-the-money, if any. Minimum margin is 100% of the option proceeds plus 10% of the aggregate contract value. Long puts or calls must be paid for in full.
Trading Hours:
Extended Hours: 2:00 a.m. to 8:15 a.m. Central time (Chicago time)
Regular Hours: 8:30 to 3:15 p.m. Central time; except that on their expiration date, expiring End-of-Month S&P 500 Index options close trading at 3:00 p.m. Central time.
All non-expiring End-of-Month S&P 500 Index options will continue to trade until 3:15 p.m. Central time.