Home Commodities Nasdaq Plans More Short-Term Options on Commodity, Treasury ETFs

Nasdaq Plans More Short-Term Options on Commodity, Treasury ETFs

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(Bloomberg) — In the latest sign of booming interest in short-duration options, Nasdaq Inc. plans in coming weeks to seek regulatory approval for Monday expiries on contracts tied to a suite of commodities and Treasuries exchange traded funds.

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Nasdaq said at the Options Industry Conference in Asheville, North Carolina, that it will file for options contracts tied to United States Oil Fund (ticker USO), SPDR Gold Shares (ticker GLD), iShares Silver Trust (ticker SLV), iShares 20+ Year Treasury Bond ETF (ticker TLT), and United States Natural Gas Fund (ticker UNG) that expire on Monday. The change would add to traditional Friday expiries as well as Wednesday expiries that options exchanges rolled out on the funds late last year.

“It increases the continuity of product that’s available in those ETF products that are heavily traded,” Sean Feeney, head of US options at Nasdaq, said in an interview at the conference.

Zero days to expiration options, or 0DTE, that expire each weekday trade on popular indexes like the S&P 500 and Nasdaq 100, as well as ETFs that track them — SPY and QQQ respectively. In the past year, exchanges have made steps to add more expiries on products, such as the Russell 2000, as investor demand for equity derivatives — particularly ones that expire within hours rather than days — hits record highs.

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