* Expansion of weeklies due to growing customer demand-NYSE
* Weeklies account for as much as 25 pct of daily option
By Doris Frankel
CHICAGO, Nov 15 U.S. options exchanges on
Thursday expanded the listing of weekly contracts from one
expiration week to five straight weeks for a group of the
most-actively traded options on stocks and exchange-traded
Investor demand for the popular short-term options, known as
weeklies, has grown dramatically over the past few years with
their U.S. option volume accounting for as much as 25 percent of
daily activity, according to TABB Group.
Exchange operator CBOE Holdings Inc said starting
on Thursday, 10 options classes are available in an expanded
program of weekly options expiring each Friday on the C2 options
venue and Chicago Board Options Exchange.
The new expirations are: Nov. 23, Nov. 30, Dec. 7 and Dec.
14. The following Friday, Dec. 21, is the last day of trading
for the standard monthly December options.
The stocks and ETFs include Apple Inc, Bank of
America Corp, BP Plc, Citigroup Inc, iShares MSCI
Emerging Markets Fund, SPDR Gold Trust, the
iShares Russell 2000 Index Fund Powershares QQQ Trust
fund, SPDR S&P 500 Trust fund and the Financial
Select Sector SPDR fund.
NYSE Euronext's options venues, NYSE Amex and NYSE
Arca, said earlier this week they were the first exchanges to
get U.S. regulatory approval to expand their short term options
program to five consecutive weeks. In a statement, head of NYSE
Euronext U.S. options exchanges Steve Cruthfield said the
expansion was in response to growing customer demand.
The two venues on Thursday started listing a group of weekly
options that also expire on Nov. 23, Nov. 30, Dec. 7 and Dec.
14. In the new expirations, five products, including Apple and
Bank of America, as well as the Financial ETF XLF, are offered
on NYSE Arca, and five ETFs, such as the popular SPY and QQQ
funds, are available on NYSE Amex Options.
"The enhanced listings of the weeklies provide investors
with the ability to refine their option strategies, including
both directional exposure and their hedging activities," said
Andy Nybo, head of derivatives research at TABB Group, based in
New York. "Weekly volumes can currently account for as much as
25 percent of total daily volume in the U.S. listed options