ISE-CCM Alternative Energy Index

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The cash-settled proprietary ISE Alternative Energy Index (POW) includes companies involved in the development of technology relating to alternative energy sources such as: geothermal heat, hydrogen/fuel cell, hydropower, nuclear fusion, solar energy, and wind energy.

The U.S. is estimated to hold less than three percent of proven global oil reserves, while OPEC-producing countries control 40 percent of production. With high oil prices, declining global supply, and a strong global economy, alternative energy alternatives gain importance. With 18 companies represented as of Oct. 1, 2007 (but can contain as many as 25 component stocks), the ISE Alternative Energy Index is constructed to specifically isolate alternative energy companies that serve as a proxy for this market segment.[1]

Suntech Power Holdings (STP UN), Altair Nanotechnologies (ALTI), Edison International (EIX) and Sunpower Corp. (SPWR) are some of the stocks represented in the Index.

The ISE-CCM Alternative Energy Index is calculated on a price and total return basis.

As of Nov. 1, 2007, there are 31 ISE index options listed.

Contract Overview

Full specifications can be found at the ISE web site.[1]

Trading hours 9:30 A.M. - 4:00 P.M. Eastern Time (New York time).
Expiration months Four near-term months followed by one additional month from the March quarterly cycle (March, June, September and December).
Strike price intervals At least $2.50.
Minimum trading increments The minimum trading increment for an options contract trading at less than $3.00 is $0.05. The minimum trading increment for an options contract trading at $3.00 or higher is $0.10.


References

  1. 1.0 1.1 Product Details. International Securities Exchange.