Cboe Adds Afternoon-Settled Options on Tech-Heavy Magnificent 10 Index
Published Date: 12/23/2025
Notice
Summary
Cboe Exchange is adding new options that settle in the afternoon for the Magnificent 10 Index, with expirations on the third Friday, plus some special and quarterly dates. This change affects traders and investors who want more flexible ways to trade these popular index options. The SEC approved this update quickly, so these new options will be available soon, offering fresh chances to manage money and risk.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 2 costs, 0 mixed.
New Weekly and EOM P.M.-Settled Expirations
If you trade options on the Cboe Magnificent 10 Index (MGTN), the Exchange will allow P.M.-settled Weekly expirations (any Monday–Friday other than the third Friday) and end-of-month (EOM) expirations. The maximum number of expirations listed for each Weekly or EOM expiration in a class is the same as standard options for that index (currently six for MGTN options).
Quarterly (QIX) P.M.-Settled Expirations Added
MGTN options will be eligible for quarterly index expirations (QIXs) that are P.M.-settled, the same as QIXs for other listed indexes. Under Rule 4.13(c), there may be up to eight near-term quarterly expirations open for trading in a class.
Position Limits Aggregated Across Expirations
Positions in MGTN options with Nonstandard Expirations, QIXs, and third-Friday P.M.-settlement will be aggregated with positions in MGTN options in the same class for position and exercise limits. The current position and exercise limits for MGTN options are 24,000 contracts (and may not be more than 31,500 without rule changes).
P.M.-Settlement Lets You Trade Through Expiration Day
Because these MGTN options are P.M.-settled, you can trade them throughout their expiration day up until the Exchange's last trading time for those contracts, which supports managing overnight risk and trading out of positions on the day they settle. The filing states P.M.-settlement permits trading throughout the day on the day the contract expires.
Last-Trading-Day Cutoff at 4:00 p.m.
On the last trading day for expiring P.M.-settled MGTN options (including Expiration Fridays), trading on the Exchange will occur between 9:30 a.m. and 4:00 p.m. Eastern Time (instead of continuing to 4:15 p.m.). The rule change amends Rule 5.1 to include MGTN P.M.-settled options in this 4:00 p.m. cutoff.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Take It Personal
Get Your Personalized Policy View
Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in