Cboe Eyes Bitcoin Options with Friday Twists: Trading Gets a Crypto Makeover
Published Date: 6/6/2025
Notice
Summary
Cboe Exchange wants to add new P.M.-settled options for their Bitcoin U.S. ETF Index and Mini Bitcoin U.S. ETF Index, including special expiration dates like third Fridays and quarterly expirations. This change could affect traders who use these options by giving them more flexible trading choices. The SEC is reviewing the proposal and will decide by early June 2025 whether to approve it, which could impact how and when these options trade.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 1 costs, 1 mixed.
Weekly and EOM P.M.-Settled Options Added
The Exchange proposes to allow P.M.-settled options on the Cboe Bitcoin U.S. ETF Index (CBTX) and the Mini-Cboe Bitcoin U.S. ETF Index (MBTX) to have Weekly expirations (any Monday–Friday other than the third Friday or end-of-month days) and end-of-month (EOM) expirations. Weekly and EOM series may be added up to and including the expiration date, and a Weekly or EOM first listed series may expire up to four weeks from its listing.
Quarterly (QIX) P.M.-Settled Series Allowed
The Exchange proposes to make CBTX and MBTX options eligible for quarterly index expirations (QIXs) that are P.M.-settled. Under Rule 4.13(c), up to eight near-term quarterly expirations may be open for trading in a class and these QIXs will be P.M.-settled.
Positions Aggregated for Limits (24,000 Cap)
The proposal amends position rules so Nonstandard Expiration Program series in CBTX and MBTX will be aggregated with other options in the same index class for position and exercise limits. The current position and exercise limit for CBTX and MBTX options is 24,000 contracts (and may not exceed 31,500 without rule changes).
Last-Day Trading Ends at 4:00 p.m. ET
For expiring P.M.-settled CBTX and MBTX options that expire on Expiration Fridays, the Exchange proposes that Regular Trading Hours on the last trading day be 9:30 a.m. to 4:00 p.m. Eastern Time (ceasing 15 minutes earlier than the 4:15 p.m. session used for some non-expiring options). The Exchange says this prevents trading after the exercise settlement value is fixed.
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