For years, sophisticated investors have used listed options as alternatives to OTC-traded credit derivatives such as credit default swaps (CDS). CBOE is now highlighting "DOOMSM"or "Deep Out-Of-the Money" put options because investors are demanding listed alternatives now more than ever before. The following link explains how DOOM Put Options and CDS are functionally similar, and provides several specific examples that compare the viability of DOOM Put Options to CDS. It also provides a list of potential names where investors may currently use DOOM Put Options in place of CDS.
DOOM Quick Reference Guide
DOOMSM is a servicemark of Peter Carr, 2009.
Options involve risk and are not suitable for all
investors. Prior to buying or selling an option, a person must receive a copy
of Characteristics and Risks of Standardized
Options (ODD). Copies of the ODD are available from your broker, by
calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North
Wacker Drive, Suite 500, Chicago, Illinois 60606. The information on this
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