Chicago Board Options Exchange (CBOE)
The Chicago Board Options Exchange (CBOE) is a financial exchange located in Chicago, Illinois, that specializes in options and futures contracts. It was founded in 1973 and is currently the largest options exchange in the United States, with trading in over 2,200 companies, 22 stock indices, and 140 exchange-traded funds (ETFs).
The CBOE is particularly known for its creation of the first listed options contract, which was based on the S&P 100 index. The exchange has also developed a number of other innovative products and services over the years, including volatility indexes, credit default options, and weekly options.
The CBOE operates as a marketplace for traders to buy and sell options contracts, which give the holder the right (but not the obligation) to buy or sell an underlying asset at a predetermined price (the strike price) on or before a specified date. The exchange uses an electronic trading platform, as well as a trading floor, where traders can execute their trades in person.
In addition to its trading services, the CBOE also provides a range of education and research resources for traders and investors, including webinars, podcasts, and market data.