ISRAEL: TASE Announces Launch of Additional Weekly Series of Options on TA-35 Index

Tuesday May 30 2023

On 29^th May 2023, the Tel Aviv Stock Exchange (TASE) announced the launch of a new weekly series of options on the TA-35 Index, in addition to the current weeklies that expire on Thursdays. Trading in the new series will commence on July 4^th, 2023. 

The weekly options on the TA-35 Index were launched at TASE in 2013, and their use is constantly on the rise. Trading in the series that is closest to expiration concentrates more than 60% of the overall trading volume of options on the TA-35 Index. Consequently, these options hold most of the liquidity among the overall series in circulation. 

Short-term options are trending globally, under the heading Zero Days to Expiration (0DTE). The launch of the additional weekly series is part of this trend and is designed to diversify the derivatives market and align it with international standards. 

Short-term options create expiration opportunities and hedging possibilities in relation to both short term micro and macro-economic events. Their characteristics – other than the time of expiration – are identical to those of the monthly options. The short time to expiration and the time decay enable trading at low premiums and with a relatively low margin requirement. 

Other than their expiration date, the new options are also similar to the existing weekly options: the final settlement price will be calculated on Tuesdays, compared to Thurdays in the existing weeklies. 

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