Mini-NDX (MNX) trading launches on Aug. 14:
Trading of the Mini-NDX (MNX (sm)) Index Options is planned to begin on Monday,
August 14.
Please visit the special web site for these new index options is at:
cboe.com.
The CBOE Mini-NDX (MNX) has a price based on 1/10 the value of the Nasdaq-100(R)
(NDX) index. So, for example, if the NDX
index is at 3600, the MNX will be 360. MNX index options have a multiplier of
100, thus, if the MNX price level is 360, an
investor could consider hedging $36,000 of equity exposure with one MNX options
contract.
The Nasdaq-100 is a modified capitalization-weighted index composed of 100 of
the largest non-financial securities listed on
the Nasdaq Stock Market. In the past year investors have shown great interest
in index products based on the Nasdaq-100
index.
Here is what one portfolio manager says -
"Our firm has been managing reduced-risk accounts hedged with index options for
more than 15 years. We already have accounts
that hedge with the S&P 500 (SPX), S&P 100 (OEX) and the technology-oriented
Nasdaq-100 (NDX) options. The introduction of
the new-sized MNX options provides us with added flexibility and risk management
opportunities, which are particularly
important when applied to the popular Nasdaq-100 Index with its high
volatilities and p/e ratios."
-- Walter Sall, Chairman of Gateway Investment Advisers, manages $2 billion in
assets.
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For any options that are based on reduced values of the Nasdaq-100 Index(R),
CBOE is solely responsible for calculating and
disseminating such reduced values from the corresponding values of the
Nasdaq-100 Index(R), and neither The Nasdaq Stock
Market, Inc. nor any of its affiliates (which are collectively referred to as
the Corporations) shall have any liability
arising out of the calculation or dissemination of such reduced values. Such
options have not been passed on by the
Corporations as to their legality or suitability, and such options are not
issued, endorsed, sold, sponsored or promoted by
the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY
WITH RESPECT TO SUCH OPTIONS. |
