Trading in options on the SPADE Defense Index [Amex: DXS] have begun on the American Stock Exchange. The SPADE index is comprised of publicly traded companies in the defense, homeland security, and space marketplace. The options will trade on the February expiration cycle, and the specialist will be Susquehanna Investment Group.
The Index is calculated using a modified market capitalization weighting methodology. The components market capitalization weights are modified to conform to asset diversification rules that are applied in conjunction with the scheduled quarterly updates to the Index. The resultant weighting is designed to be RIC compliant and ‘fund friendly’. The weight of any component stock may not account for more than 10% of the total value of the Index.
At its most recent rebalancing, 57 firms comprised the index including Boeing [BA], Lockheed Martin [LMT], Northrop Grumman [NOC], Raytheon [RTN], General Dynamics [GD], and L-3 Communications [LLL]. The DXS Index is rebalanced quarterly each March, June, September and December. An updated performance chart may be found here. SPADE Index News Release