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NYSE Sinks FANG Into Options Mart
Traders Magazine Online News, May 24, 2018
The New York Stock Exchange (NYSE), part of the Intercontinental Exchange (NYSE:ICE), announced it will launch a new equity option contract on the NYSE FANG+ Index - a new product that offers exposure to a select group of highly-traded next generation technology and tech-enabled companies. The NYSE FANG+ Index Option contract will trade in the United States exclusively on the NYSE’s options markets, NYSE Arca and NYSE American, beginning Monday, June 11.
The NYSE FANG+ Index is equal-weighted and consists of ten stocks including five core FANG stocks -- Facebook, Apple, Amazon, Netflix and Alphabet’s Google, and five actively-traded technology growth stocks -- Alibaba, Baidu, NVIDIA, Tesla and Twitter. It is calculated and disseminated through the ICE Data Global Index Feed under the symbol “NYFANG”.
The NYSE FANG+ Option contract will be European style, cash-settled, with a $100 multiplier and will trade under the symbol “FAANG”. It follows the NYSE FANG+ Futures contract launched in November 2017, which is listed on ICE Futures U.S.
“The NYSE FANG+ family of products provides investors with the opportunity to gain or hedge exposure to some of the world’s most widely recognized technology, internet, and media companies. The NYSE FANG+ Option offers a capital efficient exchange-traded instrument to gain exposure to these high-growth stocks,” said Ivan Brown, NYSE Head of Options. “This launch also reflects ICE’s capabilities to leverage assets across its franchise to deliver innovative solutions to customers, creating an index that forms the platform for a futures contract and now a new exchange-traded option.”
The combination of stocks in the NYSE FANG+ Index have returned a 30.85% annualized total return from September 19, 2014 to May 18, 2018, as compared to 16.44% for the NASDAQ-100®, 10.76% for the S&P 500® and 19.23% for the S&P 500® Information Technology Index.1 More information on the NYSE FANG+ Index’s performance, methodology and futures and options contracts can be found athttps://www.theice.com/fangplus.
1 Historical performance for the NYSE FANG+ Index prior to September 26, 2017 is based on back-tested data.
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