Dow Jones Futures and Options Trading

The Dow index is the most widely quoted and followed benchmark for the US stock market. The DJIA tracks the average price of 30 large NYSE stocks drawn from a cross section of sectors of the US economy. The DJIA portfolio consists of equal numbers of shares of each of the 30 stocks. Partly because of the vast value this basket represents, it is very difficult for individual investors to exactly replicate the performance of the Dow without owning shares of each of the 30 stocks that compromise the index, a potentially exorbitant expense.

Trading the Dow Jones Industrial Average commodity futures & options contracts individual investors and Brokers can trade the exact components of the DJIA by simply buying or selling a futures contract or commodity option.

The Dow commodity futures contract offers investors access to the risk management and investment tools long used by institutional investors such as banks, pension funds, corporations, and others. DJIA futures and futures options are versatile, cost-effective tools designed to help you protect against or profit from stock market fluctuations without changing your actual dollar investment in stocks.

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Dow Index, DIA Futures Commodity Contract Specifications

Dow Jones Industrial Average Index Futures

Contract Specs - $10 times the Dow Jones Industrial Average (DJIA). The DJIA is a price-weighted index of 30 of the largest, most liquid U.S. stocks.

Settlement Day - third Friday of the contract month.

Settlement - Cash settlement on the final settlement day. The final settlement price is $10 times a Special Opening quotation of the index.

Tick Size - 1 point ($10)

Price Quote - Points ($10)

Contract Months - Mar, Jun, Sep, Dec - Four nearest months in March quarterly cycle and two additional Decembers listed at all times.

Last Trading Day - The trading day preceding the final settlement day.

Trading Hours - Open Outcry: 7:20 a.m. to 3:15 p.m. Central Time, Mon.-Fri. Electronic: 7:15 p.m. to 7:00 a.m. Central Time, Sun.-Fri.

Ticker Symbols - DJ

Dow Jones Industrial Average Index Options

Contract Size - One CBOT Dow futures contract.

Settlement - Cash settlement on the final settlement day. The final settlement price is $10 times a Special Opening quotation of the index.

Tick Size - 1 point ($10)

Price Quote - Stated in decimals. One point equals $100. Minimum tick size is .05, or $5. For example, a December 9400 put trading .50 equals $50 premium.

Contract Months - Quarterly cycle of March, June, September, December plus two monthly (serial) option contracts. The monthly option contract exercises into the nearby futures contract. For example, an August option exercises into a September futures position.

Last Trading Day - For standard quarterly option contracts: The trading day immediately preceding the Final Settlement Day. Final Settlement Day is the third Friday of the contract month. For serial option contracts: The third Friday of the serial contract month.

Trading Hours - Open Outcry: 7:20 a.m. to 3:15 p.m. Central Time, Mon.-Fri. Electronic: 7:17 p.m. - 7:00 a.m. Central Time, Sun.-Fri.

Strike Price Intervals - Twenty 100 index point intervals up and down from the futures price.

Ticker Symbols - DJC for calls; DJP for puts

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