International Securities Exchange, Inc. - Product Specification"


  Market Structure

  Exchange Notices
  & Bulletins


  Exchange Average
  Daily Volume

  Exchange Volume
  by Symbol

  Most Active Issues/Series

S&P; SmallCap 600


Components | Products Traded

Symbol   SML

Index Description   The Standard & Poors SmallCap 600 Index is designed to measure the performance of small capitalization stocks. It is a capitalization-weighted index of 600 domestic stocks chosen for market size, liquidity and industry representation. The component stocks are weighted according to the total market value of their outstanding shares. The impact of a component´┐Żs price change is proportional to the issues total market value, which is the share price times the number of shares outstanding. These are summed for all 600 stocks and divided by a predetermined base value. The base value for the S&P; SmallCap 600 Index is adjusted to reflect changes in capitalization resulting from mergers, acquisitions, stock rights, substitutions, etc.

Index Multiplier   The index multiplier means that the options premiums are multiplied by 100 to obtain the actual premium amount.

Strike Price Interval   The strike price interval is $5.00

Minimum Trading Increments   The minimum trading increment for an options contract trading at less than $3.00 is $0.05. The minimum trading increment for an options contract trading at $3.00 or higher is $0.10.

Expiration Date   Saturday following the third Friday of the expiration month.

Expiration Months   Up to three near-term months followed by three additional months from the March quarterly cycle (March, June, September and December).

Exercise Style   European. SML options generally may be exercised only on the last business day before expiration.

Last Trading Day   Trading in SML options will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.

Settlement Type   A.M., cash settlement

Settlement Value Symbol   XSM

Settlement Value   The exercise-settlement value, XSM, is calculated using the opening (first) reported sales price in the primary market of each component stock on the last business day (usually a Friday) before the expiration date. In the event that a stock in the index does not open on the day in which the exercise-settlement value is determined, the last reported sales price in the primary market will be used in calculating the exercise-settlement value. The exercise-settlement amount is equal to the difference between the exercise-settlement value, XSM, and the exercise price of the option, multiplied by $100. Exercise will result in delivery of cash on the business day following expiration.

Position and Exercise Limits   The position and exercise limits are 100,000 contracts on the same side of the market of no more than 60,000 of such contracts in the near-term month. An index option hedge exemption for public customers may be available for certain diversified portfolios, which may expand the position limit up to an additional 75,000 contracts. Additionally, proprietary accounts of member organizations may receive an exemption of up to 200,000 contracts for the purpose of facilitating public customers orders.

Trading Hours   9:30 A.M. - 4:15 P.M. Eastern Time (New York time). Position and Exercise limits are subject to change.