Change of Expiration Date of Options on Ibovespa and Ibovespa Futures

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Study on Change of Expiration Date of Options on Ibovespa and Ibovespa Futures

The aim of this study is to verify the feasibility of changing the expiration date of Options on Ibovespa and Ibovespa Futures contracts to the third Friday of the contract month

Currently, Options on Ibovespa and Ibovespa Futures contracts expire on Wednesdays of the contract month.

The date is different from the expiration of other assets, such as stock options and other index futures, so it may render expiration strategies between Ibovespa Complex products and other derivatives unfeasible.

The purpose of this study is to verify the feasibility of changing the expiration date of Options on Ibovespa and Ibovespa Futures from the Wednesday closest to the 15th of the contract month to the third Friday of the contract month.

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Equities

benefits of the product

Improved strategy execution

By aligning the same expiration date for stock options and other index futures, a favorable scenario is created for expiration strategies, arbitrage trades, etc.

Improved contract management

Concentrating several expiration dates into the same day of the month (Ibovespa Complex, Stock Options, Index Futures and Stock Futures) would make it easier for traders and investors to manage expiration dates.

More about Options on Ibovespa and Ibovespa Futures

Changing the expiration date of Options on Ibovespa and Ibovespa Futures would meet client demand besides promoting alignment with international standards

Options on Ibovespa Ibovespa Futures Mini Ibovespa Futures

Options on Ibovespa are derivative instruments created to mitigate market price risks of institutions with assets/liabilities benchmarked to this index in order to offer a hedging mechanism to the market against possible losses. It also serves to create speculative strategies in relation to the price trajectory and the extension of an investor's exposure and return potential, as the capital initially invested to purchase an option is relatively small.

Find out more about this product and its specifications by clicking here.

The Ibovespa Futures Contract allows the market to trade the future expectations of the stock market without the need to purchase the full basket of Ibovespa stocks.

Find out more about this product and its specifications by clicking here.

The Mini Ibovespa Futures contract seeks to enable investors, especially individual investors and small companies, to begin their activities in the listed derivatives market managed by B3. This is enabled through the creation of a contract with a notional value and a differentiated minimum trading lot compared to the standard Ibovespa Futures contract.

Find out more about this product and its specifications by clicking here.