The first step in trading FTSE 100 exposure is identifying the actual option. Index options, ETF options and options on futures can have different sizes, underlyings and exercise rules.
Identify the available product
The example uses ICE FTSE 100 with GBP 10 per index point. These are contract-scale examples with hypothetical prices; availability of a quoted expiry must be checked with the broker.
The ICE contract is a cash-settled European-style option quoted in index points. Standard settlement uses the exchange delivery settlement price derived from the relevant London Stock Exchange expiry auction. Flexible and other expiry products have their own specifications. Follow the selected contract’s official timetable rather than assuming every UK index option settles at the ordinary afternoon close.
Broker access and trading costs
Confirm that the broker supports the exact product in your jurisdiction. Compare the bid–ask spread, commissions and any exchange or data fees. A heavily traded index does not guarantee a liquid option at every strike or expiration.
Check the settlement value
The final payment uses the official settlement calculation for the selected series. It may be based on opening prices or a closing calculation and can differ from the index level displayed on a general chart. Check the last trading time as well as the expiration date.
For ETF options, exercise may create a share position instead. The funds needed to take delivery can be much larger than the option premium. Uncovered writers have obligations beyond the premium they receive.
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References
ICE FTSE 100 index option specification · ICE FTSE equity derivatives