Nano Options: Cash Settlement for the Win-Win

Pop quiz — what does cash-settled mean?

Why do you even care about that? Should you?

I mean, it has the word “cash” right there in it, so yeah you should... but it’s more than that.

​Let’s take a look, yeah?

As you might or might not know, options contracts on stocks settle into shares. So, it just works like this. Once you exercise an option you hold – let’s say it’s a call option – you can buy and receive shares. But they’re just that – shares.

Not gold bars... Not stacks of dolla bills... Shares.

But with Nano options, any earnings settle into sweet, sweet cash.

And why is all of this even possible? Well, because the value of Nano options is based on the value of the S&P 500 Index*.

And when you trade options on an index, cash settlement is one of the benefits you could enjoy. This gives you the flexibility to use your cash as you see fit – including making more trades if you wanna.

Welcome to Nano options – a new, nimbler option for options traders.

‌

* Nanos trade on Cboe as a $1 multiplier option (versus a $100 multiplier for standard options) on the Mini- S&P 500 Index, which is 1/10th the value of the S&P 500 Index.