Skip to main content
    ESG

    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.

    Try Our Options Strategy Optimizer Subscribe Today

    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. And with Nasdaq’s Volatility Index (VOLQ), investors get visibility into the expected volatility of the Nasdaq-100 index 30 days out, providing them yet another way to make better, more informed options decisions.

    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 -> Lear 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
    Back

    Options Architect

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

    Select an Amount:
    $0.00
    Select a Scenario:
    Pick a Date Range:

    Amount:

    Select an Amount

      Market Moments:

      Select a Scenario

        Test Custom Dates:

        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.
        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

          Interested in trading index options, but unsure where to start? Look no further than OptionsPlay’s automated strategy optimizer, allowing you to select from a variety of index options symbols, directional sentiments and instantly see strategies with risks and rewards to make an investment decision in seconds.

          Options Education

          Understanding Options Products and Benefits

          Abstract investing image -- pen with lines on a chart

          The Battle of the Indices (NDX vs. SPX) for Options Traders

          Read the article ->
          data analysis

          Harness the Power of the Nasdaq-100 Index Using Options

          Read the article ->
          analysis

          Eliminate Assignment and Exercise Risk with Index Options

          Read the article ->
          backtesting technical analysis

          Backtesting Technical Analysis & Options Strategies: Nasdaq-100 vs S&P 500

          Read the whitepaper ->

          Options Trading Strategies

          Trade Talks

          Options Architect, a New Tool for Index Options Trading Strategies

          Watch the video ->
          Strategy chess

          OptionsPlay: Top 3 Strategies for Index Options

          Watch the video ->
          line chart

          Millennial Investing Podcast: Deep Dive into Stock Exchanges

          Listen to the podcast ->
          Stand out in crowd

          Ultimate Guide to Trading Index Options

          Read the whitepaper ->
          options education

          Options 101

          Read the guide ->

          Sign up for monthly news and insights on the ever-changing options industry.

          Learn More

          Explore the Options Ecosystem Further

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

          So many options, but not enough time?
          Sign up now for the latest options news and education.