Aug 19, 2016

In Case You Missed It - SPX Monday Weeklys

Somehow I missed the press-release or other news sources, but earlier this week CBOE listed Monday-expiring weekly options. Right now 3 expirations are listed: Monday August 22nd, 29th, and Tuesday September 6th.

Volume, open interest, and bid-ask spreads look reasonable for just-launched series, and I believe this product is already a success.

Now, with 3 regular expirations per week, it is only a question of time when CBOE will have options expiring every day of the week. The challenge is not in the product itself, but rather in technological barriers - market making software, increased network traffic, etc. I expect that we will not see another weekly expiration for another year.

I would also speculate that perhaps the next launch will be in the VIX series, maybe Friday PM settled VIX options?

1 comment:

  1. HI ~, Actually I doubt CBOE will wait more than 6 months to add the next expiration date. It seems like adding Wednesday was the big jump, once that was incorporated the other days should be pretty easy. Mondays certainly have started out well. I like your idea of an additional VIX option expiration. I don't think Friday will work because 30 days forward of that would fall on a Sunday. A Monday PM VIX expiration would map to SPX Wednesday PM options--that'd be my guess. -- Vance