Current Options
Disclosure Document
(PDF Format) 


 
Exchange-Traded Index Options


Classifications as determined on July 1, 2015.

The definition of a narrow-based index has changed and, as a result, the overwhelming majority of indices with exchange-traded options now count as "broad-based." This is good news for most index investors because options on broad-based indices receive more generous tax treatment than options on narrow-based indices.   While there is still some debate, we believe options on exchange-traded funds (whether or not they are based on broad-based indices) do not receive the favorable tax treatment.

In general, under the new definition, an index is narrow-based only if it contains nine or fewer component securities, if a single component security comprises more than 30% of its weighting, or if the aggregate of the five highest-weighted component securities comprise more than 60% of its weighting. For a more detailed discussion of the new law, go to  Good News For Index Investors.

The classification of a given index may fluctuate between broad-based and narrow-based. Investors are cautioned to confirm the classification shown below if time has elapsed from the above date.


Index Exchange Symbol Classification
CBOE Russell 2000 Volatility Index RVX Broad
CBOE Volatility Index VIX Broad
Dow Jones Industrial Average DJX Broad
KBW Bank Index BKX Broad
MSCI EAFE Index MXEA Broad
MSCI Emerging Markets Index MXEF Broad
NASDAQ-100 Index NDX Broad
NASDAQ-100 Mini Index (1/10th) MNX Broad
NYSE Arca Biotechnology Index BTK Broad
Philadelphia Oil Service Sector Index OSX Broad
Philadelphia Gold and Silver Index XAU Narrow
Philadelphia Housing Sector Index HGX Broad
Philadelphia SIG Oil Exploration & Production Index EPX Broad
Philadelphia Semiconductor Index SOX Broad
Philadelphia Utility Index UTY Broad
Russell 2000 Index RTY Broad
Standard & Poor's 100 Index
(American Exercise Style)
OEX Broad
Standard & Poor's 100 Index
(European Exercise Style)
XEO Broad
Standard & Poor's 500 Index SPX Broad
Standard & Poor's 500 Mini Index (1/10th) XSP Broad
Standard & Poor's 500 Index (PM Settlement) SPXPM Broad

More information on the tax treatment of exchange-traded index options.

Options involve risk and are not suitable for all investors.  Before engaging in an options transaction, investors must review the booklet "Characteristics and Risks of Standardized Options".
 
 


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