Euronext has launched daily options on the CAC 40 index, allowing investors to execute short-term trading strategies and gain exposure to the main index of Euronext Paris.
The new offering builds upon Euronext’s launch of daily options on the AEX index in 2008.
Short-term trading strategies will be supported by the daily options, providing greater flexibility to navigate and mitigate short-term market fluctuations and their impact.
A full range of maturities on France’s top blue-chip stocks in the central order book will become accessible to investors, from daily to five years.
Daily options on the CAC 40 will provide agility through daily expiries and strikes, offering investors autonomy and flexibility, according to Euronext.
Euronext added that investors can react to market movements, gain targeted exposure around key events, and benefit from high Theta and Gamma, utilising time decay and increased sensitivity to small price movements.
The daily options’ lower time value will also make them relatively more cost-effective when compared to longer-dated alternatives.
Daily options on the CAC 40 index are European-style options which are cash-settled at the end of the trading day.
“In 2008, Euronext launched daily options on the AEX index becoming the first stock exchange in Europe to offer a full range of maturities, from one day to five years,” said Anthony Attia, global head of derivatives and post-trade at Euronext.
“Today, we are delighted to launch daily options on the CAC 40 index, providing investors with enhanced trading opportunities. The launch demonstrates Euronext’s ability to adapt and expand its solutions on the derivatives market, responding to the needs of investors seeking to react quickly to market fluctuations. Euronext will continue to innovate its derivatives offering in the coming months.”