Cboe Lets Dow Options Settle in the Afternoon Glow
Published Date: 4/15/2026
Notice
Summary
Cboe Exchange got the green light to let traders settle options on the Dow Jones Industrial Average in the afternoon instead of the morning. This change affects anyone trading these options, making the process more flexible and aligned with market closing prices. The new rules kick in soon, helping investors better manage their trades without changing costs.
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Weekly and EOM P.M.-Settled DJX Options
The Exchange may list P.M.-settled Dow Jones Industrial Average (DJX) options that expire on Weekly days (any Monday–Friday other than the third Friday or days that coincide with an end-of-month) and on end-of-month (EOM) expirations. The maximum number of expirations for each Weekly or EOM expiration in a given DJX class is the same as the maximum for standard DJX options (currently six). This gives investors more dates to buy or hedge options that settle using the market close.
Quarterly (QIX) P.M.-Settled DJX Options
The Exchange may list P.M.-settled Quarterly Index Expirations (QIXs) for DJX options, allowing up to eight near-term quarterly expirations open for trading in a class. These QIX series will be P.M.-settled and treated the same as third-Friday series except for settlement timing. This gives investors another scheduled quarterly P.M.-settled option to use for hedging or investment timing.
Expiration-Friday P.M.-Settled DJX Options and Trading Cutoff
The Exchange may list P.M.-settled DJX options that expire on the standard third Friday-of-the-month (Expiration Friday). On the last trading day for expiring P.M.-settled DJX options, Regular Trading Hours for those expiring series will be between 9:30 a.m. and 4:00 p.m. Eastern Time (rather than 9:30 a.m. to 4:15 p.m. for non-expiring series). This stops trading before the 4:00 p.m. market close when the settlement value is calculated so the options settle to the closing prices.
Aggregation and Reporting for P.M.-Settled DJX Positions
P.M.-settled DJX option positions will be aggregated with other option contracts in those classes for purposes of complying with position and exercise limit rules and reporting requirements. The Exchange notes there are no position and exercise limits for DJX options, but certain reporting obligations apply (for example, FLEX positions over 100,000 contracts must be reported under Rule 8.35(b)).
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Key Dates
Department and Agencies
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