About Weekly Options
OSE introduced Weekly Options based on Nikkei Stock Average (hereinafter "Nikkei 225") from May 25, 2015 in addition to existing regular monthly options.
With the use of Weekly Options, market participants will gain access to more precise hedging opportunities to manage their risks from shorter term exposures.
Outline of Weekly Options
||Nearest 4 weekly contracts
(Available for a period up to 5 or 6 weeks）
* Except for weeks that regular options expire.
|Quarterly Contract Months (Available for a period up to 5 years)
June and December: Nearest 10 contract months
March and September: Nearest 3 contract months
Monthly Contract Months (Available for a period up to 9 months)
Nearest 6 contract months
||Each Friday other than the second Friday (When each Friday other than the second Friday is a non-business day, it shall be the preceding business day)
||The second Friday of each expiration month (When the second Friday is a non-business day, it shall be the preceding business day)
|Last Trading Day
The business day preceding the expiration date
Cash settlement of the difference between the strike price and the Special Quotation on the expiration date
Weekly Options in the global
Weekly Options was first listed in the United States in 2005 and has gradually expanded its market share to approximately 30 percent of the same underlying options market. OSE's Nikkei 225 Weekly Options is the first Japanese Stock Index Weekly Options in the world, which is expected to broaden investment strategies and opportunities.
|Daily Trading Volume and Open Interest Data for Weekly Options
For more details of trading volume and open interest for Weekly Options, please refer to the Daily Report of Index Options in the following link.
Characteristics of Weekly Options
[Characteristic 1] Expiration Every Week!
While regular options expire once a month, Weekly Options have three to four rolls every month.
[Characteristic 2] Lower Premium Cost!
If the indicators such as underlying price and volatility remain unchanged, the price of option or its time value has tendency to decrease as it gets closer to the date of maturity. Due to this characteristic Weekly Options trader can benefit from the fact that there are more trading opportunities to trade low premium options in shorter time span since Weekly Options expire every week other than the week in which regular options expire.
Thanks to these Characteristics above, Weekly Options allow investors to efficiently develop market event driven strategies, such as a Monetary Policy Meeting of the BOJ. Additionally, Weekly Options can be used to lower the hedging cost allowing hedgers to prepare for uncertainty with more efficiency.
List of Contract Months Codes for Weekly Contracts
||Week1: WNKYA <Index>
Week3: WNKYC <Index>
Week4: WNKYD <Index>
Week5: WNKYE <Index>
|Week1: 0#JNI1W *.OS
Week3: 0#JNI3W *.OS
Week4: 0#JNI4W *.OS
Week5: 0#JNI5W *.OS