Options will begin trading Oct. 18 on The [email protected] Week Index, a capitalization-weighted index of companies providing digital interactive services, software and hardware, at the American Stock Exchange, New York.
The index was developed jointly by the Amex and [email protected] Week, a bi-weekly newspaper covering the interactive industry. As of the close of trading Oct. 5, the index stood at 207.08, and was set at 100 as of Dec. 31, 1993.
Gary Gastineau, senior vice president of new product development at the Amex, said the index initially will get most interest from retail customers, but eventually institutions should move in as it gains acceptance. The options will trade on the basis of $100 times the index value, and will be exercisable at expiration only.
The index contains 37 companies with a total capitalization of about $85 billion. Included are companies like America Online Inc., Netscape Communications Inc., and UUNET Technologies Inc. Big companies like Microsoft Corp. or Intel Corp. are excluded.
Greg Jarboe, a spokesman for [email protected] Week, Boston, said some big computer-related companies were excluded because interactivity was not their core business or because their capitalization would dominate the index.