Chicago Board Options Exchange

Type: Private
On the web: http://www.cboe.com

First there was one. The Chicago Board Options Exchange (CBOE) may no longer be the only options exchange, but it's still the US leader in overall volume. Member-owned and founded in 1973 by the Chicago Board of Trade (which is now part of CME Group), CBOE lists options on more than 1,900 stocks, as well as on interest rates, broad-based stock indexes (such as Standard & Poor's S&P 500 Index), and industry indexes. CBOE, which had already launched the fully electronic CBOE Futures Exchange, debuted its CBOE Stock Exchange in early 2007, going head-to-head with the New York Stock Exchange and NASDAQ. CBOE also runs The Options Institute, which trains brokers and investors in all aspects of options.

Officers:
Chairman and CEO: William J. (Bill) Brodsky
President and COO: Edward J. Joyce
EVP and CFO: Alan J. Dean

Competitors:
NASDAQ OMX
NYSE Euronext

Founded in 1973, the CBOE is an exchange that focuses on options contracts for individual equities, indexes and interest rates. The CBOE is the world's largest options market. It captures a majority of the options traded. It is also a market leader in developing new financial products and technological innovation, particularly with electronic trading.

The CBOE is also referred to as the "See-bo".

Investopedia Says:
On the first day of trading in 1973, 911 contracts traded hands on 16 stocks. Today, the CBOE's average daily volume consistently exceeds one million contracts per day.

Related Links:
An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them. Options Basics Tutorial
The reverse calendar spreads offers a low-risk trading setup that has profit potential in both directions. An Option Strategy for Trading Market Bottoms
These risk-exposure measurements help traders detect how sensitive a specific trade is to price, volatility and time decay. Using the Greeks to Understand Options
These contracts allow for easier shorting, and provide more leverage and flexibility than stocks. Surveying Single Stock Futures

The world's largest options marketplace and the creator of listed options. Options traded at CBOE include options on equity, index, ETFs, structured products, and interest rates. The CBOE traded 911 contracts when it opened on April 26, 1973, listing call options on 16 stocks. Today it lists equity options on some 1,700 stocks and American Depositary Receipts (ADRs). The exchange launched index options in 1983 with the Standard & Poor's 100 Index (OEX). The contract is the most actively traded index option in the world. The CBOE holds over 90% of the index options market, trading cash-settled index options on more than 40 indices. It also trades LEAPS, FLEX options, exchange-traded funds, structured products, and interest rate options. Among the most heavily traded index options are contracts on the Dow Jones, S&P, Russell, and NASDAQ indices. CBOE also trades a family of options on international indices as well as industry sector indices. The CBOE trades European-style cash-settled options on the yield of U.S. Treasury securities. The CBOE Volatility Index, known as the VIX, is a measure of the volatility of the U.S. Equity market, using real-time S&P 500 Index option bid/ask quotes. In 2004, CBOE founded the CBOE Futures Exchange, LLC. CFE is a wholly-owned subsidiary of CBOE that operates as an all-electronic exchange, using CBOEdirect as its trading platform, with trades cleared through the Options Clearing Corporation. Trading hours: Monday through Friday, from 8:30 A.M. To 3:15 P.M. www.cboe.com. See also Securities and Commodities Exchanges.

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