The Most Popular Index Option: Ranking the Top Contenders

Choose the index option you think is the most popular!

Author: Gregor Krambs
Updated on Apr 18, 2024 07:13
Welcome to StrawPoll, where your opinion matters! Today, we're diving into the thrilling world of index options, and we need your expertise. With thousands of polls and rankings under our belt, we're excited to present our latest ranking - "What is the most popular index option?" Cast your vote for your favorite, or showcase your savvy by suggesting a missing option. Will the S&P 500 reign supreme, or will the NASDAQ 100 take the crown? Your vote will shape the outcome, so join the conversation and let your voice be heard. Don't miss your chance to be part of this captivating debate that's sure to spark intrigue and inspiration. Dive in, and may the best index option win!

What Is the Most Popular Index Option?

  1. 1
    35
    votes
    These options are based on the S&P 500 Index, which is a market-capitalization-weighted index of 500 large publicly traded companies in the United States.
    The S&P 500 Index Options is a type of index option contract that is based on the Standard & Poor’s 500 Index, a widely recognized benchmark of the U.S. stock market. The options provide investors with the ability to trade and manage risk exposure to the overall performance of the S&P 500 Index.
    • Underlying Index: Standard & Poor’s 500 Index
    • Ticker Symbol: SPX
    • Expiration Dates: Monthly, Quarterly, and Weekly
    • Contract Multiplier: 100 times the value of the index
    • Exercise Style: European-style exercise
  2. 2
    37
    votes

    Nasdaq-100 Index Options

    The Nasdaq Stock Market
    These options are based on the Nasdaq-100 Index, which is a market-capitalization-weighted index of 100 large non-financial companies listed on the Nasdaq Stock Market.
    Nasdaq-100 Index Options is a type of financial derivative based on the Nasdaq-100 Index, which is a benchmark index that tracks the performance of 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
    • Underlying Index: Nasdaq-100 Index
    • Ticker Symbol: NDX
    • Expiration: Third Friday of the expiration month
    • Settlement: Cash settlement
    • Multiplier: $100
  3. 3
    25
    votes
    These options are based on the DJIA, which is a price-weighted index of 30 large publicly traded companies in the United States.
    The Dow Jones Industrial Average (DJIA) Index Options is a type of index option that is based on the Dow Jones Industrial Average (DJIA). The DJIA is a price-weighted index that represents 30 large, publicly traded companies in the United States.
    • Underlying Index: Dow Jones Industrial Average (DJIA)
    • Option Type: Call and put options
    • Exercise Style: American
    • Expiration: Monthly and quarterly
    • Settlement: Cash-settled
  4. 4
    12
    votes
    These options are based on the Russell 2000 Index, which is a market-capitalization-weighted index of 2000 small-cap companies in the United States.
    The Russell 2000 Index Options is a financial derivative that allows investors to obtain exposure to the performance of the Russell 2000 Index, which represents a broad-based benchmark of small-cap stocks in the United States.
    • Underlying Index: Russell 2000 Index
    • Exchange: CBOE
    • Ticker Symbol: RUT
    • Expiration Cycle: Monthly
    • Settlement Method: Cash
  5. 5
    13
    votes
    VIX Index Options
    De nue pw · CC BY-SA 4.0
    These options are based on the CBOE Volatility Index, which is a measure of the market's expectation of 30-day volatility.
    The VIX Index Options, also known as CBOE Volatility Index Options, are financial instruments that allow investors to trade on the volatility of the S&P 500 index. The VIX Index is a measure of market expectations for 30-day volatility and is often referred to as the fear gauge. VIX Index Options provide investors with a way to hedge against market volatility or speculate on future volatility levels.
    • Underlying Index: S&P 500 index
    • Ticker Symbol: VIX
    • Contract Size: 100 times the VIX index
    • Exercise Style: European-style
    • Expiration Date: 30-day options
  6. 6
    6
    votes
    These options are based on the MSCI EAFE Index, which is a market-capitalization-weighted index of companies in Europe, Asia, and Australia.
    The MSCI EAFE Index Options are a type of index option that allow investors to trade based on the performance of the MSCI EAFE Index. The options provide exposure to international developed markets outside of North America.
    • Underlying Index: MSCI EAFE Index
    • Ticker Symbol: EAFE
    • Option Type: European-style
    • Expiration Cycle: Quarterly
    • Settlement Method: Cash-settled
  7. 7
    11
    votes
    These options are based on the FTSE 100 Index, which is a market-capitalization-weighted index of 100 large companies listed on the London Stock Exchange.
    FTSE 100 Index Options are a type of financial derivative that allows investors to gain exposure to the performance of the FTSE 100 Index, which is a market capitalization-weighted index of the 100 largest companies listed on the London Stock Exchange. These options give investors the right, but not the obligation, to buy or sell the FTSE 100 Index at a predetermined price, known as the strike price, on or before a specified expiration date. The value of these options is based on the price movements of the underlying FTSE 100 Index.
    • Underlying Index: FTSE 100 Index
    • Type: European-style index options
    • Expiry Cycle: Monthly, with several consecutive months available for trading
    • Strike Price Intervals: Fixed strike intervals based on the level of the underlying index
    • Contract Size: Multiplier of the index value (e.g., £10 per index point)
  8. 8
    2
    votes

    Nikkei 225 Index Options

    Osaka Exchange (OSE)
    These options are based on the Nikkei 225 Index, which is a price-weighted index of 225 large companies listed on the Tokyo Stock Exchange.
    The Nikkei 225 Index Options is a financial derivative that allows investors to trade options based on the Nikkei 225 Index. The Nikkei 225 is a benchmark index for the Tokyo Stock Exchange (TSE), which includes the top 225 blue-chip companies listed on the exchange.
    • Underlying Index: Nikkei 225
    • Exchange: Osaka Exchange (OSE)
    • Option Type: European-style
    • Contract Size: 100 Yen multiplied by the Nikkei 225 Index
    • Expiration Months: Current month, next month, and following two months
  9. 9
    4
    votes
    These options are based on the Hang Seng Index, which is a market-capitalization-weighted index of 50 large companies listed on the Hong Kong Stock Exchange.
    Hang Seng Index Options is a type of financial derivative that allows investors to trade options based on the Hang Seng Index, which is the benchmark index of the Hong Kong stock market. These options offer investors the opportunity to profit from the performance of the Hang Seng Index without directly owning the underlying securities.
    • Underlying: Hang Seng Index
    • Ticker Symbol: HHI
    • Contract Multiplier: HKD 50 per index point
    • Expiry Months: 1 near-term contract month and up to 3 serial months
    • Exercise Style: European-style exercise
  10. 10
    6
    votes
    These options are based on the CSI 300 Index, which is a market-capitalization-weighted index of 300 large companies listed on the Shanghai and Shenzhen stock exchanges.
    The CSI 300 Index Options is a popular index option based on the CSI 300 Index, which represents the performance of the top 300 A-share stocks listed on the Shanghai and Shenzhen stock exchanges. It allows investors to speculate or hedge their positions on the overall performance of the Chinese stock market.
    • Underlying Index: CSI 300 Index
    • Exchange: China Financial Futures Exchange (CFFEX)
    • Type: European-style index options
    • Expiration: Monthly expirations
    • Contract Size: 100 times the underlying index

Missing your favorite index option?

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Ranking factors for popular index option

  1. Open Interest
    Open interest refers to the total number of outstanding contracts for an option at any given point in time. A higher open interest for an index option indicates that it is more popular and has a larger number of market participants, which can translate to better liquidity and more potential trading opportunities.
  2. Market Coverage
    The index option should provide exposure to a broad and diverse range of underlying assets. This will help ensure that the index option is representative of the overall market performance and provides sufficient diversification benefits.
  3. Historical Performance and Volatility
    Another factor to consider is the historical performance and volatility of the index option. This can help traders gauge the potential risks associated with the index option and the likelihood of achieving desired investment outcomes.
  4. Time to Expiration
    The time remaining until the option's expiration date also plays a role in determining an option's popularity. Options with shorter time to expiration tend to be more liquid and popular as they are subject to less uncertainty regarding future market movements.
  5. Accessibility and Fungibility
    The ease of accessing and trading the index option is also an important factor to consider. Index options that are available on major exchanges or trading platforms and are fungible with other options are more likely to be popular and widely traded.
  6. Strike Prices and Contract Specifications
    The availability of various contract specifications, such as strike prices, expiration dates, and other customizations, can also impact the popularity of an index option. More choices and flexibility in contract terms typically attract more market participants.
  7. Regulatory Environment
    The regulatory environment surrounding index options can also impact their popularity. Options that are regulated by reputable and established regulatory agencies are generally more popular, as investors have greater confidence in their legality and fair market practices.

About this ranking

This is a community-based ranking of the most popular index option. We do our best to provide fair voting, but it is not intended to be exhaustive. So if you notice something or option is missing, feel free to help improve the ranking!

Statistics

  • 1291 views
  • 151 votes
  • 10 ranked items

Voting Rules

A participant may cast an up or down vote for each option once every 24 hours. The rank of each option is then calculated from the weighted sum of all up and down votes.

More information on most popular index option

Index options are a type of financial derivative that give investors the ability to buy or sell a basket of stocks that make up an index, such as the S&P 500 or the NASDAQ. They are popular among investors who want to diversify their portfolios and hedge against market volatility. The most popular index options are those based on the major US stock indexes, but there are also options available for international indexes and specialized sectors. The popularity of index options has grown in recent years as more investors seek exposure to the broader market without having to buy individual stocks.

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