The Value Line Composite Index Option is an unweighted, arithmetic, European style option based on the Value Line Composite Index. The Value Line Composite averages the price change from the previous day's close in each of the index's approximately 1 700 component issues. The exercise settlement value of the VLE is based on the closing prices of the component issues on the last trading day (usually Friday) prior to expiration. The PHLX option on this index began trading in 1985. A European style option, the VLE cannot be exercised until expiration, however, an investor can always trade these index options to close out their position prior to expiration.

Equal weighting treats each component of an index identically regardless of price or shares outstanding. It also ensures greater sensitivity to price changes and market movement. As smaller more volatile issues have the same impact on index value as more highly capitalized firms, the index is more sensitive to the economy than a broad-based index weighted toward firms buffered from cyclical or seasonal variations in the economy. In addition, the Value Line Composite Index reflects a broader range of companies and will usually point to an economic downturn or recovery well in advance of an index which focuses only on blue-chip or mid-capitalization companies. This makes the Value Line Composite Index a better barometer of the broad marketplace and a harbinger of activity as measured by the S&P 500, S&P Mid-Cap or the Dow Jones Industrial Average, Value Line Index Options enable investors to truly buy and sell the market.