Articles and Updates

In November, OIC hosted two webinars, Navigating ETFs & Indices: Trading Vehicles for Broad Market Exposure led by OIC instructors Ken Keating and Mark Benzaquen and the other Cash-Settled Options Explained: Mechanics and Strategic Applications led by OIC instructor Roma Colwell.   These sessions explored index and ETF options, volatility products, and cash settlement mechanics. Both sessions provided practical, foundational knowledge needed to navigate these products, clarifying structural differences that potentially have major implications for risk, assignment, and trading outcomes. They explained how end-of-day values ensure a fair and orderly market and how cash-settled index options reduce the risk of unwanted assignment or losing shares through exercise.  What We Covered: Structural Differences Between Index Options and Equity/ ETF Options Matter  Settlement: Index options settle in cash, while equity/ETF options typically settle physically.  Exercise Style: Index options are commonly European-style (exercise only at expiration), while equity/ETF options are American-style (exercise anytime).  Timing: Some index contracts have AM settlement, while all ETF options follow PM settlement.  Deliverables: Index options have no shares delivered—only a cash transfer.  Cash Settlement Preserves the Underlying Portfolio  At expiration, the intrinsic value—if any—is simply transferred as cash (settling T+1). This makes broad-based index options particularly appealing for:  Hedging diversified portfolios  Managing index-level exposure  Avoiding the operational complexities of physical delivery  End-of-Day Values Are Calculated, Not Traded  OCC determines the end-of-day theoretical price for all options using a smoothing algorithm, rather than relying on the last trade. These closing marks serve as the basis for:  Daily P&L  Margin requirements  Risk monitoring.  Keep Learning:      Key Moments from Navigating ETFs & Indices: Trading Vehicles for Broad Market Exposure  Key Moments from Cash-Settled Options Explained: Mechanics and Strategic Applications  Meet OIC instructor Roma Colwell:   Roma Colwell Roma Colwell is an Associate Principal, Investor Education at OCC and is an instructor for The Options Industry Council (OIC). Roma has more than 27 years in the securities industry, 18 of which were spent as a floor broker, market maker, specialist and risk manager in both San Francisco and Chicago.

At the Benzinga Fintech Day & Awards 2025, leaders across trading, technology, and financial innovation gathered to explore the forces shaping today's markets.

In October, OIC hosted two webinars, “The Iron Butterfly: Combining Credit Spreads for Defined Risk

OIC instructor Mat Cashman recently joined Kirk Du Plessis of Option Alpha for a focused discussion on the mechanics and market implications of zero-days-to-expiration (0DTE) options and gamma exposure

In a recent three-part video series filmed on the trading floor of Cboe, OIC instructor Mat Cashman

OIC instructor Mark Benzaquen attended MoneyShow Orlando, a financial conference that connects indiv

Have you ever wondered why, in options trading, brokerage firms require each order to specify whethe

World Investor Week (WIW) is an annual global campaign spearheaded by the International Organization

This month, OIC explored calendar spreads (time spreads using the same strike, different expirations

OIC instructor Mark Benzaquen joined Anthony Ewing, CEO and co-founder of Thoughtium, on the firm’s

OIC Instructor Mat Cashman appeared on Chicago Future of Finance with host Oliver Renick, a journali

In August, OIC hosted two webinars featuring Mark Benzaquen, OIC instructor and Principal, Investor

Hosted by long-time trader and educator Jermal Chandler, the Tastylive show Engineering the Trade, e

In July, OIC hosted two webinars, The Protective Put: Managing Downside Risk and The Collar Strategy

There’s been a lot of chatter about the ‘Rule of 16’ lately, especially during these turbulent marke

In June, OIC hosted two webinars, Premium Income I: Covered Calls and the Poor Man’s Covered Call an

Understanding the Risks and Rewards of Options Trading: Key Insights for Buyers and Sellers. In May,

In April, OIC hosted two webinars led by Mat Cashman, OIC Instructor and Principal, Investor Educati

The Options Industry Council (OIC) is excited to introduce Ask Us (Almost) Anything: OIC Office Hour

The first exchange-traded fund (ETF) in the U.S. was the S&P 500®; Depository Receipt (SPDR®), launc