NYSE Amex Options


Contract Specification -  NYSE Arca Natural Gas Index Option


Description of Index

The NYSE Arca Natural Gas Index is designed to measure the performance of highly capitalized companies in the natural gas industry involved primarily in natural gas exploration and production and natural gas pipeline transportation and transmission. The Index is equal-dollar weighted to ensure that each of its component securities is represented in approximate equal-dollar value. Equal-dollar weighting was established by designating the number of shares of each component stock that represented approximately $10,000 in market value, based on closing prices on Oct. 15, 1993 (e.g., a stock that closed at $20 per share would be represented in the Index by 500 shares for a total market value of $10,000). The aggregate value of the stocks was divided by a divisor to establish an Index benchmark value of 300.00. To ensure that each component stock continues to represent approximate equal market value in the Index, adjustments are made quarterly after the close of trading on the third Friday of January, April, July and October.

Components

For Index components click here.

Trading Unit The minimum trade size is one option contract. The notional value underlying each contract equals $100 multiplied by the Index value.

Expiration Cycle

Three consecutive near-term expiration months plus two successive months from the January cycle.

Expiration

The Saturday following the third Friday of the expiration month.

Last Trading Day

Two business days prior to expiration (normally a Thursday).

Exercising Options

European style. Options may be exercised only on the last business day prior to expiration (normally a Friday). Writers are subject to assignment only at expiration. Check with your broker to ascertain cut-off times for exercise and provisions for automatic exercise.

Delivery Method If Exercised

Cash settlement based on the dollar difference between the final settlement value of the Index and strike price of the contract multiplied by $100.

Exercise Price Intervals

Exercise (strike) prices are set at $5.00 intervals, bracketing the current value of the Index, when the Index is above 200. If the Index is below 200, the interval will be $2.50.

Options Premium Quotations Stated in dollars and cents. Minimum price variant $0.05 (nickel) for series trading under $3.00 and $0.10 (dime) for series trading $3.00 and above.

Index Settlement Value

Determined on the last business day prior to expiration, based on the first (opening) reported sale price for each component stock.

Settlement of Exercise

Next business day following expiration.

Position Limits

31,500 contracts on the same side of the market.

Minimum Customer Margin For Uncovered Writers

Premium plus 20% of the aggregate Index value (Index value x $100) minus the amount by which the option is out-of-the-money, if any. The minimum margin is premium plus 1% of the aggregate Index value.

Trading Hours

9:30 a.m. to 4:00 p.m., New York time.

Trading System

Specialist/Registered Options Trader.

Trading Symbol XNG

Final Settlement Value Symbol

NGV