Cboe Pushes Afternoon Options on Magnificent 10 Index
Published Date: 9/26/2025
Notice
Summary
Cboe Exchange wants to let traders buy and sell options on the Magnificent 10 Index that settle in the afternoon instead of the morning. This change affects investors who trade these options, offering more flexible timing with monthly and quarterly expirations. If approved, this could start soon and might open up new ways to manage money with these popular tech stocks.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 1 costs, 1 mixed.
Daily and End‑of‑Month PM Options
The Exchange proposes to allow P.M.-settled options on the Cboe Magnificent 10 Index to have Weekly expirations (any Monday–Friday except the third Friday or days that coincide with end‑of‑month expirations) and End‑of‑Month (EOM) expirations. The maximum number of expirations per Weekly or EOM expiration is the same as the standard rule (currently six for MGTN options), and new Weekly or EOM series first listed may expire up to four weeks from their listing date.
Quarterly PM‑Settled (QIX) Eligibility
The Exchange proposes to add MGTN options to the Quarterly Index Expirations (QIX) program so that these options may have up to eight near‑term quarterly expirations that are P.M.-settled. QIX series will be treated the same as options that expire on the third Friday, except they settle in the afternoon.
Positions Aggregated for Limits
The proposed rules would aggregate positions in Nonstandard Expiration Program series (including Weekly, EOM, QIX, and P.M.-Settled Third Friday series) with positions in other MGTN option expirations for position and exercise limit purposes. The current position and exercise limits for MGTN options are 24,000 contracts (and may not be more than 31,500 without rule changes).
PM Third‑Friday Options; 4:00pm Close
The Exchange proposes to permit P.M.-settled MGTN options that expire on Expiration Fridays (third Friday) and to have trading in expiring P.M.-settled MGTN options on their last trading day occur between 9:30 a.m. and 4:00 p.m. Eastern Time. This matches existing practice for other P.M.-settled expiring index options and ends trading 15 minutes earlier than non‑expiring option regular hours.
FLEX Options with PM Settlement Available
Options on the Cboe Magnificent 10 Index will be available for FLEX trading upon initial listing, which lets market participants choose custom expiration dates (including any day of the week) and may choose P.M.-settlement for those FLEX contracts. FLEX availability provides a customizable way to set expirations and settlement timing.
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