Chicago Board Options Exchange (CBOE) will list options on two new precious metals exchange-traded funds (ETFs) – iShares COMEX Gold Trust and iShares Silver Trust (CBOE ticker symbols: IAU and SLV, respectively) beginning Monday, 8 December. The US Securities and Exchange Commission (SEC) approved CBOE’s filing late on Thursday.
The iShares COMEX Gold Trust and iShares Silver Trust are ETFs that seek to reflect the performance of the price of gold bullion and silver bullion, respectively, less the trusts’ expenses. Both trusts hold physical metals.
The Designated Primary Market Maker (DPM) for these ETF options is Barclays Capital. Both contracts, specifying American-style expiration, will trade on the January expiration cycle, with introductory expirations in December, January, April and July.
Initial strike prices for IAU are in five-point increments and range from 65 to 85. Position limits are 20 million options contracts. Strike prices for SLV range from 5 to15 in one-point increments. Position limits are 25 million option contracts.
Last June, CBOE introduced its first-ever options product on a precious metals ETF – the SPDR Gold Trust ETF (GLD) – after receiving regulatory approval from the SEC. Average daily volume (ADV) in GLD has been impressive, ranging from 12,000 contracts ADV in its first month of trading to as high as more than a 40,000-contract-per-day average in August.
D.C.