Russell 2000 options and futures

An index measuring the performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks.

RUT is the symbol for options based on the Russell 2000 (RUT) Index, a leading benchmark for the performance of small-capitalization stocks. Options on the Russell 2000 have a $100 multiplier, so that, for example, if the Russell 2000 price is at 480, an investor might consider hedging a $48,000 small-cap portfolio with one RUT option.

Russell 2000 Index Options Contracts & Futures Trading Contracts

About the Russell 2000 Index Methodology
The Russell 2000 Index was created in 1984 by Frank Russell Company and was designed to track the performance of small-cap companies. RUT options, trading exclusively at the Chicago Board Options Exchange, make it simple to participate in the small-cap market.

The popularity of the Russell 2000 as a small-cap benchmark leads to four fundamental reasons for using RUT options:

Simplicity
Investors are able to trade a broad market by making one RUT trading decision rather than making the many decisions involved with investing in numerous individual stocks.

Insurance
Russell 2000 options offer a convenient and easy way to help reduce the market risk of a broad market portfolio of many small-cap stocks, without disrupting the make-up of the portfolio.

Predetermined Risk
RUT option purchasers risk only the premium they pay for the option. The risk is both known and limited.

Purchasing Russell 2000 Index Options
Purchasing RUT options, instead of buying or selling thousands of individual stocks, provides an investor with an additional opportunity to use investment capital elsewhere. For a relatively small percentage gain in the underlying index, a DJX option can increase in value by a multiple of that gain, assuming the correct option series was selected.

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