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Unique Features of Index Options

Last updated: October 20, 2023

Exchange traded Index options are similar to exchange traded equity options in that all options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document may be obtained from your broker or from any exchange on which options are traded.

For a better understanding of the differences between index options and equity option please visit the resources available through the OCC’s Options Industry Council here: Equity versus Index Options.