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To exercise an option is to implement the right under
which the holder of an option is entitled to buy (Call option) or sell
(Put option) the underlying security. Options are exercised through
the Trader Workstation's Option Exercise window (accessible from the
TWS View menu). For detailed instructions on exercising an option using
the Trader Workstation, refer to the TWS User's Guide.
Option Exercise
Requests (whether received through an TWS Option Exercise window or
by phone toll free at 1-800-821-4967*
and may be submitted as follows: |
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| For
Equity Option Contracts Traded upon: |
PTI
ProDirect must receive an Exercise Request by: |
US Options Exchanges
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16:30 Eastern
Time |
| Canadian Exchanges
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16:10 Eastern
Time |
Eurex/SOFFEX
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18:00 Central
European Time |
| Euronext |
17:40 Central
European Time
(or 10 minutes after the close of trading in the product if earlier)
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LIFFE |
17:30 Central
European Time
(17:40 Central European Time on a best effort basis) |
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*
In the event that the exercise cannot
be submitted via the TWS, an
option exercise request may be submitted by phone. An added fee
of $30 will be charged for all live phone exercise requests. |
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| ..Expiration
Friday Option Exercise Instructions |
Use the TWS Option
Exercise window to either: (i) exercise an option prior to expiration,
or (ii) deliver "contrary intentions" to the clearinghouse
for the options held; e.g., The Options Clearing Corporation (“OCC”)
for options traded on U.S. options exchanges. You must also use the
TWS Option Exercise window to instruct the clearinghouse to exercise
an option contrary to the clearinghouse’s accepted policy) on
an options Expiration day (e.g., Expiration Friday for US options).
If you do not use the TWS Option Exercise window to manually manipulate
options, the clearinghouse will handle the exercise automatically in
the manner described below: |
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OCC (USA)
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| FOR EQUITY OPTIONS TRADED
ON US EXCHANGES AND CLEARED THROUGH OPTIONS CLEARING CORPORATION
(OCC): |
-
Stock options
expiring in the current month that are $0.05 or more in the
money will be automatically exercised by the OCC without the
need for any explicit instructions from IB.
-
Index options
expiring in the current month that are more than $.01 in the
money will be automatically exercised by the OCC without the
need for any explicit instructions from IB.
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The OCC must receive "contrary
intentions" through the TWS Option Exercise window if you want
to:
- exercise a stock option that
is in the money by LESS than $0.05
- exercise a stock option or
index option that is out of the money
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CDCC (Canada)
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| FOR EQUITY
OPTIONS TRADED ON CANADIAN EXCHANGES AND CLEARED THROUGH CANADIAN
DERIVATIVES CLEARING CORPORATION (CDCC): |
-
Stock options
expiring in the current month that are 0.05 CAD or more in
the money will be automatically exercised by the CDCC without
the need for any explicit instructions from IB.
-
Index options
expiring in the current month that are more than 0.01 CAD
in the money will be automatically exercised by the CDCC without
the need for any explicit instructions from IB.
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The CDCC must
receive "contrary intentions" through the TWS Option Exercise
window if you want to:
- exercise a stock option that
is in the money by LESS than 0.05 CAD
- exercise a stock option or
index option that is out of the money
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At this time, there
is no phoned-in support for “contrary intention” decisions,
e.g. exercising out of money options, or not exercising in the money
options. |
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