Last week, CBOE Holdings Inc. (NASDAQ:CBOE) announced it would launch mini-options on?five stocks and exchange-traded funds (ETFs) for its Chicago?Board Options Exchange, Incorporated?(CBOE) and?C2 Options Exchange?(C2).
This will include options on?Apple?(AAPL),?Amazon?(AMZN),?Google?(GOOG), the SPDR Gold Trust ETF (GLD), and the?SPDR S&P?500?ETF Trust?(SPY).
There was no mention of fees but an announcement is forthcoming.
Fast forward to this week and the PHLX announced on Tuesday will begin trading its mini options on?Friday, March 22, 2013. This includes the aforementioned options with BX options to trade at a later date.?
There will not be any fees associated with trading the product.
BATS Options is joining this camp. While the exchange announced their March 18 launch date on March 1?in its February volume release, it said on Tuesday it will not charge its members to trade the mini products.
Jeromee Johnson, vice president and head of BATS Options said in a press release, “We’re pleased to give investors affordable access to these five high-priced and highly liquid stocks through Mini Options. While the trading unit size of the Mini Options contract is less than a standard option contract on these stocks, the post-trade and regulatory costs are consistent with a standard option contract. For this reason we are offering free trading in the Mini Options to minimize costs for investors and fuel adoption of these new and innovative products.”
But not all of the exchanges will be offering the products for free. This includes the International Securities Exchange (ISE). It was the first exchange to burst out of the starting gate as it announced the trading of the new product back in November. It will?charge 1/10th of its normal fees, reported Dow Jones.?
Additional exchanges will have modified fees for the products and this includes Nasdaq Options Market and NYSE Euronext Amex and Arca exchanges and Boston Options Exchange (BOX).?
As it sits now, on Monday eight exchanges will launch mini options including BATS, ISE, NYSE Euronext’s Amex and Arca exchanges, Nasdaq Options Market, BOX and CBOE’s two exchanges.?
Here’s a few takes on the new product.?
Schaeffer’s Research:I Shall Call You ‘Mini Options’
The Street:?Retail Investor Series: CBOE Mini-Options
Forbes:?Mini Options: A Cheaper Way To Place Bets On Apple, Google And The Gold ETF
InvestorPlace:?Mini-Options Change the Game for Small Investors
The Motley Fool:?Even More Options for Apple, Amazon, and Google Investors