Cboe Launches Trading in S&P 500 Equal Weight Index Options

Cboe has launched S&P 500 Equal Weight Index (EWI) options for trading, expanding its S&P 500 product suite with a new instrument designed to offer broader exposure and additional diversification to U.S. equity market participants. Trading began on April 14, 2025.

The S&P 500 EWI, which trades under the Bloomberg ticker SPW, allocates an equal 0.2% weighting to each of the 500 index constituents. Though it includes the same stocks as the traditional S&P 500 Index, the equal-weighted structure results in distinct sector and size exposures, diverging from the mega-cap concentration in the cap-weighted version.

“A more balanced exposure across the market”

Catherine Clay, Global Head of Derivatives at Cboe, commented, “As investors turn to options at record levels to help manage U.S. equity market exposure and volatility, we are pleased to expand our S&P product suite with the launch of S&P Equal Weight Index options. We expect these options to cater to both retail and institutional investors looking to diversify and implement a variety of trading strategies, ultimately providing them greater choice and ability to tailor their exposure to fit their needs. Investors are increasingly seeking to gain more balanced exposure across the market, and with the indexing expertise of S&P Dow Jones Indices and demand for the capitalization-weighted SPX options, the S&P 500 Equal Weight Index is ideally suited to underlie these new options.”

The SPEQX options are based on 1/10th the value of the S&P 500 EWI and use a standard $100 multiplier, giving the contracts a notional value of approximately $63,200 as of April 7 market close. Contracts are cash-settled, European-style, and listed with monthly expirations on the third Friday. Cboe also offers FLEX options on the index and plans to introduce PM-settled weekly expirations pending regulatory approval.

“More ways to hedge risks and manage portfolios”

Megan Morgan, Head of Market Structure at Belvedere Trading, said, “The addition of S&P 500 Equal Weight Index options by Cboe is timely and we are excited for the opportunity to serve as the Lead Market-Maker. We have long found value in the S&P 500 Index ecosystem and Cboe’s trading floor, and as the market evolves, more tools in the toolkit are always welcomed.”

Danny Kirsch, Head of Options Trading and Strategy at Piper Sandler, added, “The performance of the S&P 500 Index relative to the S&P 500 Equal Weight Index has been a key topic in conversations around equity index exposure in recent years. By adding options on the S&P 500 EWI Index, Cboe is now allowing customers more ways to hedge risks and manage portfolios.”

SPEQX options are available to trade during regular trading hours from 9:30 a.m. to 4:15 p.m. ET. The product is designed to give market participants a mid-sized notional alternative to SPX options, offering new opportunities to express views on macro trends, balance market exposure, and develop hedging strategies.