Dow jones industrial average options trading

DJX is the symbol for options based on The Dow Jones Industrial Average SM DJIA SM. So, for example, when DJIA is at 11,, the DJX level will be The DJIA - the index on which the DJX contracts are based - is the oldest established continuing U. Options on the Dow are available from 8: Since their introduction in , DJX options have grown to become some of the most popular index options worldwide.

DJIA Options Chain - Dow Jones Industrial Average Options Chain - MarketWatch

This popularity leads to four fundamental reasons for using DJX options:. Investors are able to trade a broad market by making one DJX trading decision rather than making the many decisions involved with investing in numerous individual stocks. DJX options offer a convenient and easy way to help reduce the market risk of a broad market portfolio, without disrupting the make-up of the portfolio. DJX option purchasers risk only the premium they pay for the option, plus commissions.

The risk is both known and limited. Purchasing DJX options, instead of buying or selling numerous individual stocks, provides an investor with an additional opportunity to use investment capital elsewhere.

For a relatively small percentage gain in the underlying index, a DJX option can increase in value by a multiple of that gain, assuming the correct option series was selected. CBOE Regulatory Circular RG notes that CBOE rules allow a short position in a cash-settled-index option established and carried in a margin account to receive covered margin treatment, if the short option position is offset in the same account by an equivalent position in an index-tracking ETF that is based on the same index that underlies the short option s.

In order to receive covered margin treatment, the market value of the offsetting ETF position must be equivalent or exceed the current aggregate index value of the option being covered.

One should note that not all ETFs are managed so as to maintain a share price that is a constant fraction e. Click here to visit the Options on DIAMONDS - DIA Microsite. TradeStation Voted Best for Options Traders 2 Years in a Row by Barron's. Options involve risk and are not suitable for all investors.

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Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options ODD. Copies of the ODD are available from your broker or from The Options Clearing Corporation, One North Wacker Drive, Suite , Chicago, Illinois The information on this website is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current.

Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions which should be referred to for additional detail and are subject to changes that may not be reflected in the website information.

No statement within the website should be construed as a recommendation to buy or sell a security or to provide investment advice.

The inclusion of non-CBOE advertisements on the website should not be construed as an endorsement or an indication of the value of any product, service, or website. The Terms and Conditions govern use of this website and use of this website will be deemed acceptance of those Terms and Conditions.

My Account Account Settings Sign Out. Options on the Dow Jones Industrial Average DJX www. Prices for 3 VIX Futures are above.

This popularity leads to four fundamental reasons for using DJX options: Simplicity Investors are able to trade a broad market by making one DJX trading decision rather than making the many decisions involved with investing in numerous individual stocks. Insurance DJX options offer a convenient and easy way to help reduce the market risk of a broad market portfolio, without disrupting the make-up of the portfolio.

Predetermined Risk DJX option purchasers risk only the premium they pay for the option, plus commissions.

Leverage Purchasing DJX options, instead of buying or selling numerous individual stocks, provides an investor with an additional opportunity to use investment capital elsewhere. Margin CBOE Regulatory Circular RG notes that CBOE rules allow a short position in a cash-settled-index option established and carried in a margin account to receive covered margin treatment, if the short option position is offset in the same account by an equivalent position in an index-tracking ETF that is based on the same index that underlies the short option s.

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Strategies To Trade The Dow Jones Industrial Average | Investopedia

No trades for the chart. Spreadsheets with Historical Price Data For Select Indexes Historical Daily Prices - Spreadsheet with Closing Prices for SPX, VIX and Other Select Indexes Historical Month-end Prices - Spreadsheet with Closing Prices for SPX, VIX and Other Select Indexes Links to More Information Livevol Data Shop gives users access to decades of historical options data Price Quotes Page Advanced Charts. Related Links Products Main Learn By Product Volatility Strategies Volatility Price Charts Volatility Videos Volatility Bibliography VIX Index IOSCO Statement VIX Index Complaints Uncover Powerful Outcomes.

How to Buy Dow Jones Futures Options | Finance - Zacks

CBOE Links Government Relations Investor Relations CBOE Livevol Data Shop Livevol CBOE Media Hub System Status Chinese Language Site Risk Management Conference Careers Advertise with CBOE CBOE. Other CBOE Sites CBOE Futures Exchange C2 Exchange Trading Permit Holders. CBOE Options involve risk and are not suitable for all investors.