Stock Trading Basics
Listing on 11 Commodity Based ETFs
By Frank Kneipher
May 20, 2007 - 12:18:42 PM

Listing on 11 Commodity-Based ETFs  

The Chicago Board Options Exchange (CBOE) is listing options on 11 Commodity-based Exchange-Traded Funds (ETFs) as of Wednesday, May 9. These ETFs are the first security options products that give investors exposure to commodity prices.

"We have seen a tremendous increase, worldwide, in commodity-based products," said Joseph Levin, CBOE Vice President of Research and Product Development. "In response to customer requests, CBOE is pleased to introduce these eleven new ETF options, which have the potential to be powerful tools to help investors manage risk and diversify their investment portfolios."

iShares GSCI Commodity-Indexed Trust is an exchange-traded fund
that invests in a diversified group of commodities. The funds objective is that its performance will correspond generally to the performance of the GSCI Total Return Index. Strike prices for GSG options will range from 30 to 50, in one-point increments, with position limits of 25,000 contracts.Group One Trading, LP has been named the Designated Primary Market Maker (DPM) in the options.

PowerShares DB Agriculture Fund is an exchange-traded fund whose objective is to track the Deutsche Bank Liquid Commodity Index-Optimum Yield Agriculture Excess Return Index. Strike prices for DBA options will range from 20 to 30, in one-point increments, with position limits of 50,000 contracts. Jane Street Specialists, LLC has been named the DPM in the options.

PowerShares DB Base Metals Fund is an exchange-traded fund whose objective is to track the Deutsche Bank Liquid Commodity Index-Optimum Yield Industrial Metals Excess Return Index, which is intended to reflect the base metals sector. Strike prices for DBB options will range from 20 to 35, in one-point increments, with position limits of 25,000 contracts. Susquehanna Investment Group has been named the DPM in the options.

Powershares DB Commodity Index Tracking Fund is an investment fund whose objective is to reflect the performance of the Deutsche Bank Liquid Commodity Index Optimum Yield - Excess Return. Strike prices for DBC options will range from 20 to 30, in one-point increments, with position limits of 50,000 contracts.Susquehanna Investment Group has been named the DPM in the options.

PowerShares DB Energy Fund is an exchange-traded fund whose objective is to track the Deutsche Bank Liquid Commodity Index-Optimum Yield Energy Excess Return Index, which is intended to reflect the energy sector. Strike prices for DBE options will range from 20 to 35, with position limits of 25,000 contracts. Group One Trading, LP has been named the DPM in the options.

PowerShares DB Gold Fund is an exchange-traded fund whose objective is to track the Deutsche Bank Liquid Commodity Index-Optimum Yield Gold Excess Return Index, which is intended to reflect the changes in market value of gold. Strike prices for DGL options will range from 20 to 35, in one-point increments, with position limits of 25,000 contracts. Susquehanna Investment Group has been named the DPM in the options.

PowerShares DB Oil Fund is an exchange-traded fund whose objective is to track the Deutsche Bank Liquid Commodity Index-Optimum Yield Crude Oil Excess Return Index, which is intended to reflect the changes in market value of crude oil.Strike prices for DBO options will range from 20 to 30, in one-point increments, with position limits of 25,000 contracts. Group One Trading, LP has been named the DPM in the options.

PowerShares DB Precious Metals Fund is an exchange-traded fund whose objective is to track the Deutsche Bank Liquid Commodity index-Optimum Yield Precious Metals Excess Return Index, which is intended to reflect the precious metals sector. Strike prices for DBP options will range from 20 to 35, in one-point increments, with position limits of 25,000 contracts. Jane Street Specialists, LLC has been named the DPM in the options.

PowerShares DB Silver Fund is an exchange-traded fund whose objective is to track the Deutsche Bank Liquid Commodity Index-Optimum Yield Silver Excess Return Index, which is intended to reflect the changes in market value in silver. Strike prices for DBS options will range from 20 to 35, in one-point increments, with position limits of 25,000 contracts. Susquehanna Investment Group has been named the DPM in the options.

United States Natural Gas Fund is an exchange-traded fund whose objective is for the units' net asset value to reflect the performance of the price of natural gas delivered at Henry Hub, Louisiana , as measured by the futures contract on natural gas traded on the New York Mercantile Exchange.

Strike prices for UNG options will range from 40 to 65, in one-point increments, with position limits of 25,000 contracts. Jane Street Specialists has been named the DPM in the options.

United States Oil Fund LP is an exchange-traded fund whose objective is for the units' net asset value to reflect the performance of the spot price of West Texas Intermediate light. The fund invests in futures contracts for West Texas Intermediate light. Strike prices for USO options will range from 40 to 60, in one-point increments, with position limits of 250,000 contracts. Susquehanna Investment Group has been named the DPM in the options.

Keep in mind that a ll of the ETFs will trade on the January expiration cycle with introductory expirations in May, June, July and October.

Frank Kneipher

FKPRINTS1@YAHOO.COM