S&P 500® Index Options - PM-Settled

On October 4, 2011, C2 Options Exchange began trading p.m.-settled, electronically-traded S&P 500® Index options with the ticker "SPXpm."
Key features of SPXpm options include:

FULLY ELECTRONIC MARKET MODEL
Listed on C2 Options Exchange, CBOE Holdings' all-electronic exchange
Point-and-click access
LARGE CONTRACT SIZE
100 multiplier and a large notional size
Contract size is ten times larger than SPY (SPDR ETF) options making it more cost effective
PM-SETTLEMENT
Aligns with single-stock options and ETF options and with S&P 500 options traded OTC
Preferred by many investors including those with end-of-day reporting needs
The ability to trade in and out of positions on settlement day
CASH-SETTLEMENT, EUROPEAN-STYLE EXERCISE
Like SPX and most other index options, and unlike SPY and other ETF options
No risk of early assignment and loss of dividends, no portfolio disruption on assignment
CBOE Circulars (RG99-09 and RG00-171) allow SPX options to be written on a "covered" basis against SPY or IVV ETF shares in a margin account, provided the investor's brokerage firm has such policies in place
TAX TREATMENT
Under section 1256 of the Tax Code, profit and loss on transactions in certain exchange-traded options, including SPX and SPXpm, are entitled to be taxed at a rate equal to 60% long-term and 40% short-term capital gain or loss, provided that the investor involved and the strategy employed satisfy the criteria of the Tax Code*
COMPLEMENTS EXISTING PRODUCTS
SPX options will continue with AM-settlement at CBOE
SPX Quarterlys and Weeklys will continue as distinct pm-settled contracts traded at CBOE