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Cboe Launches New Futures and Options on the "Magnificent 10" Index

BeInOptions Team7 min read

Cboe Global Markets will launch new cash-settled futures and options on the Magnificent 10 technology index on December 8.

What is the Magnificent 10 Index?

The Magnificent-10 Index is a curated basket of the ten strongest U.S. tech and growth stocks that dominate the market.

Quelle: Cboe IR — Product Launch Announcement

The Tech Giants in the Index

The Magnificent-10 Index focuses on market-dominating technology companies known for their innovation, market capitalization, and growth potential:

Software & Cloud

Leading cloud computing and software companies

E-Commerce & Internet

Dominant online platforms and marketplaces

Hardware & Semiconductors

Chip manufacturers and hardware producers

AI & Innovation

Pioneers in artificial intelligence

Why Does It Matter?

1.One Contract for the Entire Tech Group

Traders can now trade an entire technology group with a single contract instead of buying ten different individual stock options.

2.Perfect for Hedging Strategies

Ideal for investors who want to hedge against tech volatility without having to hedge each position individually.

3.New Spread and Trading Opportunities

Offers new opportunities for spread strategies, directional trades, and volatility plays on the entire tech sector.

Advantages for German Options Traders

  • Tech Exposure Without Individual Stocks: Great way to trade tech exposure without buying individual stocks
  • Cash Settlement: Cash settlement simplifies international execution and eliminates delivery risks
  • Diversification: Automatic diversification across ten leading tech companies reduces single-stock risk

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Trading Strategies with the Magnificent-10 Index

Directional Trades

Bet on rising or falling tech markets with Call or Put options

Volatility Plays

Use Straddles and Strangles for large market movements

Portfolio Hedging

Protect your tech portfolio with Put options