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Expense Index

The Morningstar Options Expense Index (MOE) is an estimate of the expense of trading an option.

You can think of the MOE as the round trip transaction cost to buy and then resell an option per unit of exposure to the underlying stock or index.

The MOE is calculated as the difference between the bid and asked price, divided by the midpoint of the bid/asked price, divided by the delta in % (leverage) of the option. It is taken as an absolute value.

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