CBOE Liberalizes Hedged Position Rules

April 24, 2002 (PLANSPONSOR.com) - The Chicago Board Options Exchange (CBOE) has liberalized rules governing certain hedged positions, including many of the most popular hedge strategies.

The CBOE said in a press release that it had dropped position and exercise limits in areas such as:

  • hedged Nasdaq-100 Index Tracking Stock option contracts
  • buy-writes, or covered calls
  • reversals
  • conversions
  • collars
  • boxes

The necessary rule change was approved by the Securities and Exchange Commission and is now in effect.

For a complete list of exempt positions, including some Over-The-Counter option strategies, click here .

Requirements for firm proprietary and customer accounts to report to CBOE positions and hedge information in excess of specified thresholds are in effect.