Institutional

Equity FLEX Options


Introduction to CBOE Equity FLEX Options

In 1993 CBOE created and launched FLexible EXchange Options (FLEX Options). FLEX options were originally developed for Index options traders, providing the ability to customize contract terms, while preserving the benefits of exchange traded contracts. FLEX options are now broadly available on Indexes and Equities, including Exchange Traded Funds (ETFs).

Click here for information on Index FLEX Options.


Why FLEX Options?

FLEX options offer investors the ability to custom-tailor most contract terms and to enjoy expanded position limits.
Equity FLEX options offer:

  • the ability to create customized equity options -- options on stocks and Exchange Traded Funds that can be designed to fit individual investment strategies and goals
  • contract guarantees and virtual elimination of counterparty risk
  • no position limits, however reporting obligations do apply
  • fully electronic, anonymous trading platform
  • price discovery of competitive auction markets
  • price transparency of the listed options market
  • secondary market to offset or alter positions


OCC's Financial Guarantee

The issuer and guarantor of all FLEX Option contracts is The Options Clearing Corporation (OCC). OCC, founded in 1973, is the world's largest derivatives clearing organization and was the first clearinghouse to receive the "AAA" credit rating from Standard & Poor's Corporation. OCC operates under the jurisdiction of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

While an over-the-counter market exists for customized options, it cannot provide the benefit of OCC issuance and clearance, nor the price transparency and competitive bidding process of Exchange auction markets.


Electronic Trading Platform: CFLEX

Click here for more information about CFLEX.



Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available from your broker, by calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606. The information on this website is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions which should be referred to for additional detail and are subject to changes that may not be reflected in the website information. No statement within the website should be construed as a recommendation to buy or sell a security or to provide investment advice. The inclusion of non-CBOE advertisements on the website should not be construed as an endorsement or an indication of the value of any product, service, or website. The Terms and Conditions govern use of this website and use of this website will be deemed acceptance of those Terms and Conditions.