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The Big Tech Index That Weights Every Name Equally, Explained
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ticker lesson
Breakdown
0:00MGTN· ticker
MGTN — new product with 10 tech companies
- Launched October 14th, 2025
- Options listed Dec 8th, 2025
- 10 component companies: Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, Tesla, Broadcom, Palantir, AMD
- Fixed composition under methodology
- Companies replaced via merger, acquisition, delisting, bankruptcy
2:21MGTN· ticker
MGTN — equal weighting methodology
- Equal weighting starts with 10% target per component
- Weight drifts as prices move
- Cboe monitors weights daily
- Ad hoc capping at 15% or 57% for top 5
- Equal weighting ≠ equal performance or risk
4:45MGTN· ticker
MGTN — price return index
- Price return index reflects component stock price changes
- Uses advisor for scheduled weight changes
- Real-time index from US equity exchanges
- Disseminated every 15 seconds 9:30–4:15 ET
- Final value after 4:20 ET
4:46MGTN· ticker
MGTN options — multiplier and tick rules
- Multiplier $100 per index point
- Premium of 2.50 = $250 per contract
- Minimum tick 0.01 = $1 for < $3 contracts
- Minimum tick 0.05 = $5 for ≥ $3 contracts
- European style exercise, cash settled
4:47MGTN· ticker
MGTN options — settlement and expiration
- Cash settled based on component opening prices
- Settlement value calculated from opening sales price
- No delivery of shares
- Expiration date confirmed on options chain
- Settlement amount = (exercise price - final value) × $100
4:48lesson
Reading MGTN options on a platform
- Locate MGTN, review expirations, confirm AM settlement
- Identify strike column, bid, ask, quoted premium
- Multiply quote by $100 for dollar amount
- Show where platform identifies expiration
- Explain final settlement value from component opening prices
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