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    Option to Outperform

    Nasdaq-100® Index Options

    More options to invest in innovation, to capitalize on opportunities and to outperform benchmarks. Discover how to leverage Nasdaq-100 Index Options to mitigate risk, generate income and maximize exposure to some of today’s most innovative companies.

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    The Nasdaq-100 Index

    Capitalize on the performance of the world’s most innovative companies

    Home to some of the most innovative companies in the world, the Nasdaq-100 index features modern-day industrials. It is made up of 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization.

    Investing in the Nasdaq-100 allows investors to gain exposure to leading businesses that drive the economy across a broad swath of industries including technology, health care, and consumer staples. Diversity is critical to the index’s outstanding success over the past two decades, with a total return of nearly 63% from 2007 to 2020—three times that of the S&P 500.

    Why Options?

    Tracking the Nasdaq-100 through NDX options offers investors the opportunity to capitalize on the performance of these innovative companies. Whether to protect a portfolio against a market correction, hedge risks, or generate yield enhancement, Nasdaq-100 index options give both retail and institutional investors the ability to stay invested in equities, while reducing downside risk. Think of options as buying an insurance policy with a one-time premium payment. 

    Nasdaq 100

    Nasdaq-100: Industry Breakdown

                      Performance Matters

                      Nasdaq-100 vs. S&P

                      Indexes Chart

                      Investing with Index Options

                      NDX

                      Nasdaq-100® Index Options

                      The underlying value of NDX is equal to the full value of the Nasdaq-100 Index (NDX). NDX index options offer both monthly AM settlement and weekly PM settlement to fit various investor needs.

                      Learn more about A.M.-settled NDX -> Learn more about P.M.-settled NDXP ->

                      NQX

                      Nasdaq-100® Reduced-Value Index Options

                      NQX is based on 1/5th (20%) the full value of the Nasdaq-100 Index (NDX). NQX index options offer monthly and weekly PM settlement, providing investors lower notional exposure while tracking the NDX.

                      Learn more ->

                      XND

                      Nasdaq-100® Micro Index Options

                      XND is based on 1/100th (1%) the full value of the Nasdaq-100 Index (NDX). XND index options offer monthly and weekly PM settlement, providing a manageable way to hedge or gain NDX exposure.

                      Learn more ->
                      Nasdaq-100 Index Options | XND, NDX, NQX, VOLQ
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                      Options Architect

                      Select a historic market moment to test out Nasdaq-100 Index Options Strategies

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                              Investment Style:

                              • bearish
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                              • bullish

                              Strategy Feature:

                              Available Products:

                              XND i XND: Nasdaq 100 micro index options product. XND is based on 1/100th (1%) the full value of the Nasdaq-100 index. The smaller notional value of the micro contract is designed to provide investors with a more precise and manageable way to hedge or gain exposure to the Nasdaq-100 index. XND options offer monthly and weekly PM settlement. NQX i NQX: Reduced value index options product. NQX is based on 1/5th (20%) the full value of the Nasdaq-100 index, offering investors lower notional exposure while tracking the Nasdaq-100. NQX options offer monthly and weekly PM settlement. NDX i NDX: Nasdaq’s flagship index options product. The underlying value is equal to the full value of the Nasdaq-100 index. NDX options offer monthly AM settlement and weekly PM settlement to fit various investor needs.
                              Select from the below to test out different options strategies.
                              * Data provided by

                              For the sake of simplicity, the examples that follow do not take into consideration commissions and other transaction fees, tax considerations, or margin requirements, which are factors that may significantly affect the economic consequences of a given strategy. An investor should review transaction costs, margin requirements and tax considerations with a broker and tax advisor before entering into any options strategy.

                              Options involve risk and are not suitable for everyone. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies may be obtained from your broker, one of the exchanges or The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, IL 60606 or call 1-888-OPTIONS or visit www.888options.com.

                              Any strategies discussed, including examples using actual securities and price data, are strictly for illustrative and education purposes and are not to be construed as an endorsement, recommendation or solicitation to buy or sell securities.

                              Nasdaq® is a registered trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED. © 2021. Nasdaq, Inc. All Rights Reserved.

                              Your Selections

                              Initial Investment

                              Investment Style:

                              • bearish
                              • Neutral
                              • bullish

                              Strategy Feature:

                              Available Products:

                              XND i XND: Nasdaq 100 micro index options product. XND is based on 1/100th (1%) the full value of the Nasdaq-100 index. The smaller notional value of the micro contract is designed to provide investors with a more precise and manageable way to hedge or gain exposure to the Nasdaq-100 index. XND options offer monthly and weekly PM settlement. NQX i NQX: Reduced value index options product. NQX is based on 1/5th (20%) the full value of the Nasdaq-100 index, offering investors lower notional exposure while tracking the Nasdaq-100. NQX options offer monthly and weekly PM settlement. NDX i NDX: Nasdaq’s flagship index options product. The underlying value is equal to the full value of the Nasdaq-100 index. NDX options offer monthly AM settlement and weekly PM settlement to fit various investor needs.
                              YOUR RETURN:

                                Cumulative Total Return Performance
                                  *This chart shows the return on a $2,500 investment, assuming an investment date of 7/1/20. * Data provided by

                                  For the sake of simplicity, the examples that follow do not take into consideration commissions and other transaction fees, tax considerations, or margin requirements, which are factors that may significantly affect the economic consequences of a given strategy. An investor should review transaction costs, margin requirements and tax considerations with a broker and tax advisor before entering into any options strategy.

                                  Options involve risk and are not suitable for everyone. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies may be obtained from your broker, one of the exchanges or The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, IL 60606 or call 1-888-OPTIONS or visit www.888options.com.

                                  Any strategies discussed, including examples using actual securities and price data, are strictly for illustrative and education purposes and are not to be construed as an endorsement, recommendation or solicitation to buy or sell securities.

                                  Nasdaq® is a registered trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED. © 2021. Nasdaq, Inc. All Rights Reserved.

                                  * Data provided by

                                  Benefits of Nasdaq-100 Index Options

                                  #1

                                  Cash Settled

                                  With an NDX option contract, cash is delivered instead of the asset. This can make it easier to manage contracts around expiration dates since investors don’t need to have a closing position prior to the expiration. In addition, there’s no risk of forced delivery.

                                  #2

                                  European Style

                                  Most equity options are American style, meaning they can be exercised at any point prior to expiration. European style is the opposite. These types of contracts can only be exercised upon expiration. Why does this matter? American-style options can carry higher costs to account for the fact that sellers take on more risk by not knowing when a buyer might decide to exercise their contract. Sellers of European-style options don’t have to price that risk in.

                                  #3

                                  Tax-Favorable Treatment

                                  Like most other investments, options contracts are subject to taxes. However, index options benefit from a more favorable tax treatment: 40% of any gain (or loss) is taxed at the short-term capital gains rate, and 60% is taxed at the appropriate long-term tax rate. This 60/40 split is applicable even if the index option is held for less than a year.

                                  #4

                                  Various & Flexible Expiration Dates

                                  Equity and index options both typically expire on the third Friday of the expiration month. But index options offer greater flexibility by allowing for AM and PM expirations. NDX has Monday, Wednesday and Friday PM expirations, as well as AM expirations for traditional third Friday monthly options. 

                                  #5

                                  Multiple Contract Sizes

                                  The underlying value of an equity option is 100 shares of the security. With an index option, an investor can trade reduced value options. These are designed primarily for retail investors and asset managers who handle smaller accounts since the cost is lower than trading options at the full price of the Nasdaq-100. NQX is the reduced value NDX index option. It provides the same broad-based exposure of the index at a fraction of the cost.

                                  More Options to Invest

                                    Nasdaq-100 Index Options Nasdaq-100 PM Settled Index Options Reduced Value Nasdaq-100 Index Options Micro Nasdaq-100 Index Options Invesco Nasdaq-100 ETF
                                  Options Chain NDX NDX NQX XND QQQ
                                  Root Ticker Symbol NDX NDXP NQX XND QQQ
                                  AM or PM Settlement AM-settled PM-settled PM-settled PM-settled PM-settled
                                  Approximate Notional Size $1,527,300 $1,527,300 $305,500 $15,300 $37,200
                                  Exercise Style European European European European American
                                  Settlement Type Cash Cash Cash Cash Physical Shares of ETF

                                  OptionsPlay Optimized Index Options Strategies

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                                  Nasdaq-100 Index Options | XND, NDX, NQX, VOLQ
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