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CBOE Software CWX

The Computer Software index is made up of U.S. companies engaged in the computer programming industry and traded on the New York Stock Exchange. The CWX is a price-weighted index (weighted by the market price of each stock in the index), meaning the higher priced stocks will impact the index more than lower priced securities.

Options expire on the Saturday immediately following the third Friday of the expiration month. Expiration months are quarterly (March, June, September and December).

An industry sector index affords investors the opportunity to participate in market trends without having to research and select specific stocks or groups of stock. A market sector index is a simpler, more efficient measure of movement within a given industry. A contract within a market sector index affords investors to focus efforts on overall market movement rather than the risks behind a specific stock.

Sector indices will reflect movement within their given markets to the extent their member companies represent the given industry. A sector index is "benchmarked" against the value at which it was originally set and will typically be altered at least once per year to maintain an accurate representation.

Options are traded on a given index and are settled in cash, unlike equity options which are settled in stock. The assigned writer (seller) is obligated to pay the exercising holder (buyer) the difference between the closing value of the underlying index and the exercise (strike) price of the option, multiplied by the specified index multiplier (usually $100). Basically, a multiplier of 100 in a sector index means that for every point a sector option is "in the money," there is an incremental $100 of intrinsic value.

Symbol     Name                             Weight      
ADBE ADOBE SYSTEMS INC 9.72%
BMCS BMC SOFTWARE, INC. 6.43%
CA COMPUTER ASSOCIATES INTERNATIONAL 5.78%
CDN CADENCE DESIGN SYSTEMS, INC. 4.50%
CPWR COMPUWARE CORP. 4.08%
CTXS CITRIX SYSTEMS, INC. 6.85%
ERTS ELECTRONIC ARTS, INC. 8.37%
INTU INTUIT, INC. 16.32%
MSFT MICROSOFT CORP 15.20%
NOVL NOVELL, INC. 4.33%
ORCL ORACLE CORPORATION 4.69%
PMTC PARAMETRIC TECHNOLOGY CORP 3.38%
PSFT PEOPLESOFT, INC. 2.73%
SYMC SYMANTEC CORP. 2.70%
TLC LEARNING CO., INC. THE 4.93%

 


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