NASDAQ OMX announces that trading in weekly options on Swedish shares starts on NASDAQ OMX Stockholm on May 26. The introduction of weekly single stock options is an extension of the successful weekly index options offering that NASDAQ OMX launched in 2012, and that today represent around 5 percent of the total Swedish index options volumes.
“Weekly stock options is a reaction to market demand and will equip customers with a tool to tailor their investment strategies more precisely,” said Lauri Rosendahl, Senior Vice President at NASDAQ OMX. “Basically it facilitates a higher level of flexibility for investors to act on or hedge short term events, such as company announcements or macro driven events, without being limited to a monthly exercise date. In addition, shorter expiration cycles provide leverage without overpaying for time value, thus enabling important cost efficiency advantages.”
The weekly stock option contracts have a maturity of up to four weeks with expiration each Friday, except the third Friday of every month. The currency will be in the Swedish krona. The contract size is 100 shares and at least five out-of-the-money, one at-the-money and five in-the-money strike prices will initially be listed for all maturities. The Swedish shares that will be underlying security for the weekly options are: ABB, AstraZeneca, Ericsson B, Hennes & Mauritz B, Lundin Petroleum, Nordea, Nokia (SEK), Swedbank A, SEB A, SHB A, Sandvik, TeliaSonera, and Volvo B.
The weekly stock options series will be cleared at NASDAQ OMX Clearing AB.