Administration December 4, 2003
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.
Reported by Fred Schneyer
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.