ISE introduces ISE SPY Bear Option Overlay Index and ISE SPY Bull Option Overlay Index

ISE introduces ISE SPY Bear Option Overlay Index and ISE SPY Bull Option Overlay Index

05/12/2011

The International Securities Exchange (ISE) has created the ISE SPY Bear Option Overlay Index (symbol: VCS) and ISE SPY Bull Option Overlay Index (symbol: VPS), two innovative new indexes that track the performance of a diversified portfolio of vertical call or put spread strategies* based on the SPDR® S&P 500® ETF (symbol: SPY). The indexes provide leveraged directional exposure to the underlying ETF and give investors the ability to track two popular trading strategies on the most actively traded ETF.

"The ISE SPY Bear Option Overlay Index and ISE SPY Bull Option Overlay Index are the first indexes of their kind, allowing investors a simplified way of tracking vertical spread strategies," said Kris Monaco, Head of New Product Development at ISE. "Although we have introduced these indexes based on the popular SPY ETF, the methodology we have developed is portable, and can be applied to many other underlying ETFs, stocks, or even indexes.  Once VCS and VPS are implemented as ETFs, they will provide a flexible way to trade popular strategies with controlled directional exposure and in a cost efficient manner."

The indexes are live and distributed via the Options Price Reporting Authority (OPRA) to major market data vendors.  Real-time prices and historical data are available via Bloomberg (symbols: VCS and VPS).

To learn more about the ISE SPY Bear Option Overlay Index and the ISE SPY Bull Option Overlay Index, please visit www.ise.com/index.