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S&P Healthcare Index HCX
The Standard and Poors' Healthcare Index is an index of domestic companies within the healthcare industry. It is a capitalization-weighted index, representing a sector of the S&P 500. Each component stock is weighted according to the total market value of its outstanding shares.
The strength of a component is proportional to the issue's total market value: share price multiplied by the number of shares outstanding. These are summed for all stocks and divided by a set value. This base value is adjusted to reflect changes in capitalization as a result of mergers and acquisitions, stock rights, substitutions, etc.
HCX options expire on the Saturday immediately following the third Friday of the expiration month. Expiration months are generally two near term months plus two additional months from the March quarterly cycle (March, June, September and December).
An industry sector index affords investors the opportunity to participate in market trends without having to research and select specific stocks or groups of stock. A market sector index is a simpler, more efficient measure of movement within a given industry. A contract within a market sector index affords investors to focus efforts on overall market movement rather than the risks behind a specific stock.
Sector indices will reflect movement within their given markets to the extent their member companies represent the given industry. A sector index is "benchmarked" against the value at which it was originally set and will typically be altered at least once per year to maintain an accurate representation.
Options are traded on a given index and are settled in cash, unlike equity options which are settled in stock. The assigned writer (seller) is obligated to pay the exercising holder (buyer) the difference between the closing value of the underlying index and the exercise (strike) price of the option, multiplied by the specified index multiplier (usually $100). Basically, a multiplier of 100 in a sector index means that for every point a sector option is "in the money," there is an incremental $100 of intrinsic value.
| Symbol |
Name |
Shares
(In millions) |
Market Value
(In millions) |
Weight
|
| ABT |
ABBOTT LABORATORIES |
1,517.62 |
77,303.82 |
5.87% |
| AET |
AETNA INC |
142.946 |
11,239.13 |
0.85% |
| AGN |
ALLERGAN INC |
65.99 |
5,889.61 |
0.45% |
| AHP |
AMERICAN HOME PRODUCTS CORP |
1,318.01 |
90,118.93 |
6.84% |
| AMGN |
AMGEN INC |
509.024 |
39,735.69 |
3.02% |
| AZA |
ALZA CORP |
99.884 |
3,664.49 |
0.28% |
| BAX |
BAXTER INTERNATIONAL INC |
285.993 |
18,964.91 |
1.44% |
| BCR |
CR BARD INC |
53.603 |
2,817.51 |
0.21% |
| BDX |
BECTON DICKINSON AND CO |
249.002 |
9,462.08 |
0.72% |
| BMET |
BIOMET INC |
112.314 |
4,871.62 |
0.37% |
| BMY |
BRISTOL MYERS SQUIBB CO |
1,987.14 |
128,791.77 |
9.78% |
| BOL |
BAUSCH AND LOMB INC |
56.09 |
3,915.78 |
0.30% |
| BSX |
BOSTON SCIENTIFIC CORP |
392.92 |
15,667.69 |
1.19% |
| COL |
COLUMBIA HEALTHCARE CORP |
645.506 |
13,434.59 |
1.02% |
| GDT |
GUIDANT CORP. |
301.278 |
19,583.07 |
1.49% |
| HCR |
HCR MANOR CARE, INC. |
110.847 |
2,708.82 |
0.21% |
| HRC |
HEALTHSOUTH CORP |
423.057 |
4,336.33 |
0.33% |
| HUM |
HUMANA INC |
167.381 |
1,924.88 |
0.15% |
| JNJ |
JOHNSON AND JOHNSON |
1,344.67 |
131,777.56 |
10.00% |
| LLY |
ELI LILLY AND CO |
1,099.70 |
99,247.93 |
7.53% |
| MDT |
MEDTRONIC INC |
584.185 |
42,170.86 |
3.20% |
| MKG |
MALLINCKRODT INC |
71.285 |
1,889.05 |
0.14% |
| MRK |
MERCK AND COMPANY INC |
2,382.13 |
198,311.99 |
15.05% |
| PFE |
PFIZER INC |
1,297.79 |
189,559.04 |
14.39% |
| PNU |
PHARMACIA AND UPJOHN INC |
508.052 |
31,753.25 |
2.41% |
| SGP |
SCHERING PLOUGH CORP |
1,469.61 |
87,901.17 |
6.67% |
| STJ |
ST JUDE MEDICAL INC |
84.162 |
2,061.97 |
0.16% |
| THC |
TENET HEALTHCARE CORP |
310.142 |
6,512.98 |
0.49% |
| UNH |
UNITED HEALTHCARE CORP |
186.233 |
8,822.79 |
0.67% |
| WLA |
WARNER LAMBERT CO |
821.41 |
58,730.82 |
4.46% |
| WPI |
WATSON PHARMACEUTICALS |
95.129 |
4,251.08 |
0.32% |
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