FLexible EXchange (FLEX) options were introduced by Cboe in 1993 to broaden access to customizable exchange-traded derivatives. FLEX options combine exchange trading and central clearing with customization of permitted contract terms. They are not a guarantee of liquidity, investment performance or absence of counterparty risk.
FLEX rules permit customization of terms such as strike, expiration and exercise style. Available choices, eligible underlyings, quotation conventions and contract sizing follow the exchange specifications; they are not unlimited private negotiation.
OCC central clearing reduces bilateral counterparty exposure, but does not eliminate all clearing, broker, operational or market risk. A historical credit-rating claim is not a current risk guarantee.
Index FLEX® Options
Index FLEX availability is determined by the exchange’s current eligible products and rules. Do not infer that every index listed at an exchange supports every FLEX feature. Check Cboe’s current FLEX specifications.
Equity FLEX® Options
Equity FLEX options cover eligible equities under current exchange rules. Confirm the underlying, deliverable, exercise style and broker access rather than assuming every listed class is available.
