SET50 Index Options is a contract that gives the buyer the right, but not the obligation, to buy or sell SET50 Index at a specific price on or before a certain date. An option, just like a stock or bond, is a security. It is also a binding contract with strictly defined terms and properties. The advantage of options is that you aren't limited to making a profit only when the market goes up. Because of the versatility of options, you can also make money when the market goes down or even sideways. SET50 Index Options is the second product on TFEX and was launched on October 29th, 2007.
Summary of SET50 Index Options Contract Specification
|Underlying Asset||SET50 Index which is compiled, computed and disseminated by the Stock Exchange of Thailand|
|Ticker Symbol||S50C: Call Options
S50P: Put Options
|Contract Multiplier||THB 200 per index point|
|Contract Months||3 nearest consecutive months plus 1 quarterly month|
|Minimum Price Fluctuations||0.10 index point|
|Price Limit||+30% of the previous day's SET50 Index|
|Strike Price Interval||25 points (at least 2 in-the-money strikes, 2 out-of-the-money strikes and 1 at-the-money strike).|
|Speculative Position Limit||Net 100,000 delta equivalent SET50 Index Futures contracts on one side of the market in any contract months of SET50 Index Futures and SET50 Index Options combined.|
|Last Trading Day||The business day immediately preceding the last business day of the contract month. Time at which trading ceases on Last Trading Day is 16:30 hrs.|
|Final Settlement Price||The final settlement price shall be the numerical value of the SET50 Index, rounded to the nearest two decimal points as determined by the exchange, and shall be the average value of the SET50 Index taken during last 15 minutes and the closing index value, after deleting the three highest and three lowest values.|
|Settlement Method||Cash Settlement|
|Exchange Fee||THB 5 per contract per side
|Brokerage Commission||Freely negotiable|
The above description is a summary of the contract specification. Please refer to the procedures of listing of Derivatives Contracts for the official contract specification.
* On September 27, 2012 which is the last trading day of Option series September 2012 (U12), TFEX will not generate the series September 2013 (U13) to comply with the new features of the SET50 Index Options. However, the existing Options series will be available until their expiry dates. For example, series June 2012 (M12) will be available to trade until June 27, 2012.
** The existing Options series with a strike price interval of 10 points will be available until they expire. For example the Options series S50Z12C870 will be available to trade until the last trading day of December contract month.
Quote Vendor Codes
|Bloomberg||Thomson Reuters||Six Telekurs|
|SET50<INDEX> OMON|| S50xxxmy.FX
(xxx = strike price)
-Call Options: .S50ECTVO.FX
-Put Options: .S50EPTVO.FX
| -Call Options: S50myycstrike,825
-Put Options: S50myypstrike,825
SET Index, SET50 Index, SET100 Index and all indices calculated by the Stock Exchange of Thailand ( “SET” ) (collectively called "SET Index Series" ) are the registered trademarks/service marks solely owned by, and proprietary to SET. Any unauthorized use of SET Index Series is strictly prohibited. All information provided is for information purposes only and no warranty is made as to its fitness for purpose, satisfactory quality or otherwise. Every effort has been made to ensure that all information given is accurate, but no responsibility or liability (including in negligence) can be accepted by SET for errors or omissions or for any losses arising from the use of this information.
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