Get off the starting line! - A quick guide on Cboe's index options

Index options have come a long way. They used to be traded mainly by floor traders, but have become more accessible to retail traders. They’re still tradable assets and, are not immune to risk. So, while index options are available to individual traders and investors, before you jump in, know their specs, understand their behavior, and most important, learn how to manage your risks.

Index options are derivatives that allow traders to take a bullish, bearish, or neutral position on the overall market. The S&P 500® Index, which represents 500 large-cap companies, is a good indicator of the U.S. stock market. If you have a strong market view, you can consider trading index options on the S&P 500 or other indexes.

Index options have some characteristics that differ from equity or ETF options. Let’s take a deeper dive into the potential benefits of trading index options. Explore the full version of the Cboe index options white paper and share which benefit you find most valuable!

What are your takeaways from this guide? Let us know in the comments below!

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