Weekly Hang Seng TECH Index Options

Weekly index options contracts on Hang Seng TECH Index (“HSTECH”) provide risk management tools for investors to manage their short-term risks on the exposure of HSTECH.

Weekly index options are similar to the monthly index options except that they expire on the last business day of every week instead of the second last business day of the month.

With a shorter maturity, weekly index options contracts would have a lower option premium and faster time decay compared to the monthly index options contracts.

USES OF WEEKLY INDEX OPTIONS

Weekly index options are useful for investors in the following ways:

Cost effective: trading or hedging against short-term market events with relatively low option premium.
Yield enhancement: employing short options strategies to capture option premium by taking advantage of the rapid time decay of its premium.
Option risk management: managing the risks of options portfolio (delta, gamma and vega, etc) more effectively.

Weekly index options can also be used for options trading strategies such as covered calls, call/put spreads, straddles etc. at a relatively low cost.

Publication

Weekly HSTECH Options Information Sheet

Updated 02 Sep 2024

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Contract Specifications

Item	Contract Terms
Underlying Index	Hang Seng TECH Index
HKATS Code	"HTI” + Strike + Month + Year + “W” + Expiry Day e.g. HTI3500J4W25 Where: - “HTI” means underlying code; - “3500” means strike price; - “J” means October and call; - “4” means year 2024 contract; - “W25” means weekly product with 25th of the month as expiry
Contract Multiplier	HK$50 per index point
Minimum Fluctuation	One index point
Contract Weeks	Spot week and the next week, except where the Expiry Day of the Weekly Contract is the same as the Expiry Day of the Spot Month Hang Seng TECH Index Option Contract
Trading Hours	T Session 9:15 am - 12:00 noon (morning trading session) 1:00 pm - 4:30 pm (afternoon trading session) (Expiring contract closes at 4:00 pm on the Expiry Day) T+1 Session 5:15 pm – 3:00 am (after-hours trading session)
Expiry Day	The Last Trading Day of the Contract Week
Official Settlement Price	Average of quotations of the underlying index taken at five (5) minute intervals on the Expiry Day
Transaction Costs	Exchange Fee* HK$5.00 Commission Levy** HK$0.54* Commission Rate Negotiable

Please visit “Rules, Regulations and Procedures of the Futures Exchange” under “Rules and Regulations” of the HKEX website for full contract specifications.

Updated 30 Aug 2024

Trading Fees and Commission

Weekly Hang Seng TECH Index Options
Exchange Fee*	HK$5.00 per contract per side
Commission Levy**	HK$0.54 per contract per side
Total	HK$5.54 per contract per side
Commission	Negotiable

* Currently there is a market-wide 50% trading fee discount for Weekly Hang Seng TECH Index Options (i.e.HK$2.5 per contract per side).

** The amount indicated above is subject to change from time to time.

Updated 30 Aug 2024

Derivatives Market Access Codes

Information Vendor	Access Codes
Information Vendor	Weekly HSI Options	Weekly HSCEI Options	Weekly HSTECH Options
AASTOCKS.com Limited	322105	322125	322601
Bloomberg Finance L.P	HSI Index OMON	HSCEI Index OMON	HSTECH Index OMON
DB Power Online Ltd	HSI	HHI	-
ET Net Limited	Menu "Futures/Options" > "Futures/Options Quotation (Short-term)" Access code: The series name	Menu "Futures/Options" > "Futures/Options Quotation (Short-term)" Access code: The series name	Menu "Futures/Options" > "Futures/Options Quotation (Short-term)" Access code: The series name
Infocast Limited	HSI	HHI	HTI
MegaHub Limited	HSI	HHI	-
N2N-AFE	873101	873121	-
Refinitiv	<0#HSIW*.HF>	<0#HCEIW*.HF>	0#HTIW*.HF
Tele-Trend Ltd	File->Open->Options->HSI	File->Open->Options->HHI	-

Updated 30 Aug 2024