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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: Carl Fritch who wrote (1190)	1/9/1999 5:47:00 PM
From: Mark H. Bornfeld	Read Replies (1) \| Respond to of 2241

You may already have heard; below is e-mail from the CBOE: *********************************************** Subject: CBOE Launches Options on The Dow 10 Date: Thu, 31 Dec 1998 09:18:11 -0600 From: CBOE Investor Services <investor_services@cboe.com> To: "'CBOE_General_Announcements@cboe.com'" <CBOE_General_Announcements@cboe.com> FOR IMMEDIATE RELEASE CBOE Launches Options on The Dow 10SM Options Based On "Dogs" of the Dow Theory Will Trade Exclusively at CBOE CHICAGO, December 30, 1998 - The Chicago Board Options Exchange (CBOE) announced that it will begin trading Options on The Dow 10 (ticker symbol: MUT) on January 4, 1999. Employing the strategy commonly known as "dogs" of the Dow, Options on The Dow 10 is an equal-weighted index of the top 10 dividend-yielding stocks in The Dow Jones Industrial Average. The 10 component stocks will be selected and re-balanced as an equal-weighted index annually. The multiplier for the index will be $100. "The Dow 10 strategy offers investors a disciplined way to invest in blue-chip companies that have fallen out of favor, and the annual selection of the 10 stocks offers investors an easy way to stick with the strategy. This is by far the most cost-effective way for investors to invest in this strategy," said CBOE Chairman and CEO William J. Brodsky. "It's also a simple way for investors currently participating in the strategy to hedge their position." Options on The Dow 10 is a cash-settled, European-style index option, with expiration of up to three near-term months plus up to three months on the March expiration cycle. LEAPS (Long-Term Equity AnticiPation Securities) with expirations up to three years in the future may also be listed. Strike prices for options and LEAPS will be set to bracket the index level in increments of at least 1/2 point. The expiration date will be the Saturday following the third Friday of the expiration month, with the last trading day occurring two business days preceding the expiration date. The settlement value will be calculated based on the opening prices of the component securities on the business day prior to expiration. Arbitrade LLC will be the Designated Primary Market Maker (DPM) in the options. CBOE, regulated by the Securities and Exchange Commission (SEC), is the pioneer of listed options and the world's largest options marketplace. For additional information about the CBOE and its products, access the CBOE site on the World Wide Web at cboe.com. 12/30/98