XSP® Use Cases

Unlike SPY and other ETF options, Cboe's Mini-SPX(XSP) index options give traders certainty on the final settlement value without the possibility of contra-exercise or assignment on expiration day.

XSP is European style and cash settled, meaning there is no delivery of unwanted shares, lowering the risk that a broker will prevent a same day trade or force settlement before the close.

XSP also offers additional benefits beyond those of SPY, including global trading hours allowing traders to react to market events around the clock.

Disclosures:

*Under section 1256 of the Tax Code, profit and loss on transactions in certain exchange-traded options, including SPX Options, are entitled to be taxed at a rate equal to 60% Long-term and 40% short-term capital gain or loss, provided that the investor involved and the strategy employed satisfy the criteria of the Tax Code. Investors should consult with their tax advisors to determine how the profit and loss on any particular option strategy will be taxed. Tax laws and regulations change from time to time and may be subject to varying interpretations.