Cboe S&P 500 Equal Weight Index Options

Broader Exposure, Greater Flexibility

S&P 500 Equal Weight Index options provide exposure to all S&P 500 companies equally weighted at 0.2%. Based on 1/10th the value of the S&P 500 Equal Weight Index, these cash-settled, AM (SPEQX) and PM (SPEQW) settled, European-style options maintain the same trading mechanics and tax benefits as SPX options while offering unique trading opportunities and risk profiles.

Why Trade S&P 500 Equal Weight Index Options?

Broad Exposure: Access enhanced diversification and balanced exposure across all 500 constituents.

Unique Performance Profile: Benefit from historically different volatility and return patterns compared to cap-weighted SPX.

Relative Value Trading: Capitalize on relative value and dispersion-like trading opportunities between SPEQX/SPEQW and SPX.

Tax Efficiency: Enjoy potentially favorable tax treatment (60% long-term/40% short-term capital gains).*

Institutional-Grade Structure: Eliminate early assignment risk and physical delivery requirements through cash-settled, European-style exercise.

Hedging Flexibility: SPEQX and SPEQW options may be utilized to hedge the growing $70B+ equal-weight ETF market. **

Overview of the S&P 500 Equal Weight Index

What’s the difference between S&P 500 Equal Weight Index Options and SPX?

Feature	SPEQX Options	SPX Options
Index Methodology	Equal-weighted (0.2% per constituent)	Market cap-weighted
Sector Exposure	Balanced across sectors	Tech/Communications heavy
Volatility Profile	Historically provides lower volatility	Higher volatility driven by large caps
Contract Size	Smaller sized contract 1/10 value of S&P 500 Equal Weight Index	Full sized contract

Client Use Case for S&P 500 Equal Weight Index Options

Asset Managers

Income-focused strategies (covered call/put writing on equal-weight exposure)

Portfolio hedging for equal-weight portfolios

Alternative to using ETF options for UCITS-compliant funds

Hedge Funds

Relative value trades between cap-weighted and equal-weighted indices

Expressing views on market breadth vs. concentration

Alternative to dispersion trades without single stock option complexity

 ETF Issuers

Hedging for equal-weight ETF products

Creating structured products based on equal-weight exposure

Supporting options-based ETF strategies using equal-weight as the underlying

 RIAs and Wealth Managers

Alternative income strategies with potentially lower volatility

Diversification away from cap-weighted concentration risk

Tax-efficient options strategies using 1256 contracts

Trading Resources

Available Expirations and Trading Hours

AM-settled standard monthly SPEQX options expire on the third Friday of each month, with FLEX options also available for customized strike prices and expiration dates. PM-settled SPEQW options may include quarterly, end of month, weekly Friday and daily expirations.

SPEQX options trade during regular trading hours (RTH) from 9:30 a.m. ET to 4:15 p.m. ET on business days preceding the expiration date. SPEQW options trade during regular trading hours (RTH) from 9:30 a.m. ET to 4:15 p.m. ET on business days other than the expiration date. SPEQW option trade until 4:00 p.m. ET on the expiration date.

Product Materials

Exchange Information

Market Data

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Disclaimer
* 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.

There are important risks associated with transacting in any of the Cboe Company products discussed here. Before engaging in any transactions in those products, it is important for market participants to carefully review the disclosures and disclaimers contained at: https://www.cboe.com/global-disclaimers/ . These products and digital assets are complex and are suitable only for sophisticated market participants. In certain jurisdictions, Cboe Company products are only permitted for investment professionals, certified sophisticated investors, or high net worth corporations and associations. These products involve the risk of loss, which can be substantial and, depending on the type of product, can exceed the amount of money deposited in establishing the position. Market participants should put at risk only funds that they can afford to lose without affecting their lifestyle.