Derivatives - Dow Jones Utilities Index
DJU Trading & Investing
Dow Jones Utilities Trading Strategies
The
Utilities HOLDRS will issue Depositary Receipts called
Utilities HOLDRS representing an undivided beneficial ownership in the
common stock of a group of specified companies that are involved in
various segments of the utilities industry. The Bank of New York is the
trustee. Utilities
HOLDRS may be acquired, held or transferred in a
round-lot amount of 100 Utilities HOLDRS or round-lot multiples. Utilities
HOLDRS are separate from the underlying deposited common stocks that are
represented by the Utilities HOLDRS. The Utilities HOLDRS Trust is not a
registered investment company under the Investment Company Act of 1940.
Exchange Traded Funds (ETFs) & iShares, Options & Futures
Trading / Futures Contracts
|
Securities |
Issuer |
Type |
Symbol / Root |
|
Utilities HOLDRS |
Merrill Lynch |
ETF |
UTH |
|
Dow Jones Utility Average |
CBOE |
Options |
DUX |
|
Dow Jones Utility Average |
CBOT |
Futures |
DU/DR |
|
Dow Jones Utilities Options Contracts
DUX is the symbol for options based on the Dow Jones
Utilities index (DUX, DJT, DU/DR). The DUX is a price-weighted index of 20
of the largest, most liquid NYSE and NASDAQ transportation related stocks.
The Dow Jones Utilities index option contract is based on 1/100th
(one-one-hundredth) of the current value of the Dow Jones Utilities index.
So, for example, when DUX is at 250, the Dow Jones Transports level will
be 2.5.
The
CBOT
Dow Jones Utilities index
futures trading contract allows a broad sector of market participants to hedge
commodity and inflation exposure and achieve portfolio diversification
through a standardized futures trading contract. Designed to be a highly liquid
and diversified benchmark for commodities as an asset class, the
Dow Jones Utilities index
is a unique product that focuses on the utilities and energy sector of the
US economy. Unlike other commodity indexes, the
Dow Jones Utilities index index
emphasizes the economic significance of its components. Calculation of the
index relies primarily on liquidity data, as well as production data, to
determine its component weightings.
| 
