Weekly Hang Seng Index Options

WEEKLY INDEX OPTIONS ( Commence Trading on 16 September 2019)

To supplement the existing monthly index options, introduction of the weekly index options contracts on HSI and HSCEI aims to provide risk management tools for investors to manage their short term risks on the exposure of HSI and HSCEI positions.

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.

FEATURES OF WEEKLY INDEX OPTIONS

With a shorter maturity, weekly index options contracts would have a much lower option premium and faster time decay comparing to the monthly index options contracts, thus allowing short term trading and more attractive short options strategies.

USAGES 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.

Updated 24 Oct 2023

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Contract Specifications

Item	Contract Terms
Underlying Index	Hang Seng Index
HKATS Code	"HSI” + Strike + Month + Year + “W” + Expiry Day e.g. HSI27000A9W25 Where: -“HSI” means underlying code; -“27000” means strike price; -“A” means Jan - contract month; -“9” means year 2019 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 HSI 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
Final Settlement Price	The average of quotations taken at (i) five (5) minute intervals from five (5) minutes after the start of, and up to five (5) minutes before the end of, the Continuous Trading Session of SEHK; and (ii) the close of trading on SEHK on the Expiry Day.
Transaction Costs	Exchange Fee HK$10.00 Commission Levy HK$0.54* Commission Rate Negotiable

Updated 02 May 2022

Trading Fees and Commission

Hang Seng Index Options
Exchange Fee	HK$10.00 per contract per side
Commission Levy	HK$0.54 per contract per side
Total	HK$10.54 per contract per side
Brokerage Commission	Negotiable

Updated 22 Aug 2019

Derivatives Market Access Codes

Information Vendor	Access Codes
Information Vendor	Weekly HSI Options	Weekly HSCEI Options
AASTOCKS.com Limited	322105	322125
Bloomberg Finance L.P	HSI Index OMON	HSCEI 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
Infocast Limited	HSI	HHI
MegaHub Limited	HSI	HHI
N2N-AFE	873101	873121
Refinitiv	<0#HSIW*.HF>	<0#HCEIW*.HF>
Tele-Trend Ltd	File->Open->Options->HSI	File->Open->Options->HHI

Updated 29 Aug 2019