"Flexible Exchange Options" or "FLEX Options" are designed to extend investor access to customized derivative products. FLEX options combine the benefits of contract customization with the advantages of listing and can provide investors with:
FLEX Trades are permissible on options classes not listed on the NYSE options markets but require certification with the OCC on the day before the FLEX trade is executed. Cut off time for certification by the exchange is 12:00 Noon ET. Therefore, all requests to trade FLEX options on non-American/Arca Options must be submitted before 11:30am on the day before the expected trade date.
To request an underlying to be qualified as FLEX eligible, submit a request to the relevant NYSE options markets:
FLEX Trades are permissible on options classes not listed on the NYSE options markets but require certification with the OCC on the day before the FLEX trade is executed. Cut off time for certification by the exchange is 12:00 Noon ET. Therefore, all requests to trade FLEX options on non-American/Arca Options must be submitted before 11:30am on the day before the expected trade date.
A minimum 1 contract is required to open a new Equity Flex Option Series. For closing transactions the minimum is also 1 contract.
For select eligible Exchange Traded Funds (ETFs), NYSE American Options and NYSE Arca Options offer ‘cash’ settlement as a flexible term. The top 50 underlying securities, ranked by national average daily volume, with an average daily notional value of $500 million or more and a national average daily volume of at least 4,680,000 shares (measured twice each year, over the prior 6-month period) will be eligible. The current list of FLEX ETF Options that are eligible to have cash settlement as a flexible term can be found here.
Additional details can be found here.
Index-FLEX options may be traded on any multiply listed index upon which options trade.
A minimum 1 contract is required to open a new Index Flex Option Series.
Terms of NYSE Arca Options FLEX Options - Rule 5.32-O
Equity options, which are the most common type of equity derivative, give an investor the right but not the obligation to buy or sell a call or put at a set strike price prior to the contract’s expiry date.
Index options make it possible for investors to seek either profit or protection from price movements in a market as a whole or in broad segments of a particular market.
Options on ETFs allow investors to gain exposure to the performance of an index, hedge against a decline in assets, enhance portfolio returns, and/or profit from the rise or fall of a leveraged ETF.
Equity options, which are the most common type of equity derivative, give an investor the right but not the obligation to buy or sell a call or put at a set strike price prior to the contract’s expiry date.
Index options make it possible for investors to seek either profit or protection from price movements in a market as a whole or in broad segments of a particular market.
Options on ETFs allow investors to gain exposure to the performance of an index, hedge against a decline in assets, enhance portfolio returns, and/or profit from the rise or fall of a leveraged ETF.