Thursday, July 29, 2010

CBOE's Weeklys on ETFs and Stocks May Be Causing a Range-Bound Market Since June?

Just so you know, too. (I didn't know. H/T liveup)

If you trade any of these ETFs and stocks, be aware that they have weekly options (Weeklys) traded on them on top of regular options, courtesy of CBOE (Chicago Board of Options Exchange), that expire every Friday. In case you're wondering why Apple (AAPL) gets hit back to $260 for several weeks, this may be your answer. CBOE has had Weeklys on the indices (S&P 500 and Dow, both American style and European style) since 2005, but the introduction of Weeklys on ETFs and select stocks is a recent event (since June 4, 2010).

SPY (since June 4, 2010)
QQQQ (since June 4, 2010)
DIA (since June 4, 2010)
IWM (since June 4, 2010)
EEM (since July 5, 2010)
USO (since July 5, 2010)
GLD (since July 5, 2010)
XLF (since July 5, 2010)

AAPL (Apple; since June 25, 2010)
BAC (Bank of America; since June 25, 2010)
BP (BP; since June 25, 2010)
C (Citigroup; since June 25, 2010)
F (Ford; since July 5, 2010)
GOOG (Google; since July 5, 2010)

What's more, the individual stocks that will have Weeklys on them seem to vary from week to week. Here's the latest indices, ETFs, and stocks that have Weeklys (table downloaded from CBOE):

(Click on the chart for a better view. If the image doesn't load fast enough, go here and download:

Note to FAS/FAZ traders: They've been range-bound for a reason...

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