Take advantage of Euronext’s decades of experiences in the index space. Trade our range of option contracts on leading indices to gain exposure to price movements of entire indices through a single option contract.
Options on Euronext's national index benchmarks
Options on the AEX, BEL 20, CAC 40, OBX, PSI and FTSE MIB indices.
Weekly and daily options are available on the AEX Index, CAC 40 Index and the FTSE MIB Index.
Index options
Hedging with Index Options: protecting your portfolio
Index options are widely used as a hedging tool to protect investment portfolios from adverse market movements. By purchasing put options on a stock index, investors can safeguard their portfolios against potential declines in the market. This strategy acts as an insurance policy, allowing traders to offset losses in their holdings if the index falls below a certain level. For instance, during periods of heightened market volatility or economic uncertainty, investors may turn to index options to maintain stability in their portfolios. The ability to hedge against downside risk without having to sell underlying assets makes index options an attractive choice for those looking to preserve capital while remaining invested in the market.
Speculation and income generation: leveraging Index Options
Beyond hedging, index options are also employed for speculative purposes and income generation. Traders who anticipate a rise in a stock index may purchase call options to profit from upward movements, while those expecting a decline might buy put options. This speculative use of index options allows investors to capitalise on market trends without the need to directly invest in individual stocks. Additionally, index options can be used to generate income through strategies such as writing covered calls, where investors sell call options on indices they already own. This approach enables traders to earn premium income while potentially benefiting from favourable market conditions. By understanding and implementing these use cases, investors can enhance their trading strategies and achieve diverse financial objectives.
Mini Index options
- Mini Index derivatives are options and futures with contract sizes that are 10 times smaller than the standard contracts.
- Follow the same investment strategies as with the standard contracts, but with less initial margin or with a smaller trading amount
Mini index options
Accessibility and precision with Mini Index Options
Mini index options are designed to provide investors with a more accessible and precise way to engage with the market. These scaled-down versions of standard index options require a smaller capital commitment, making them ideal for individual traders and smaller institutions. Mini index options allow investors to hedge specific portions of their portfolios or to speculate on market movements with greater precision. For example, a trader with a modest portfolio can use mini index options to protect against potential losses in a particular market segment without overextending their financial resources. This accessibility enables a broader range of investors to implement sophisticated trading strategies, such as spreads and straddles, tailored to their specific risk tolerance and investment goals.