Options on Exchange Traded Funds (ETFs) Product Specifications
Underlying: Generally, 100 shares of one of the exchange-traded funds or HOLDRs above.
Strike Price Intervals:
ETF Options: Minimum strike price intervals of not less than 1 point are permissible if the strike price is equal to or less than $200. When the strike price exceeds $200, strike price intervals will be no less than 5 points.
HLDRs Options:Minimum strike price intervals of not less than 1 point are permissible if the strike price is equal to or less than $200. When the strike price exceeds $200, strike price intervals will be no less than 5 points.
Strike (Exercise) Prices: In-, at- and out-of-the-money strike prices are initially listed. New series generally will be added when the underlying shares trade through the highest or lowest strike price available.
Expiration Date: Saturday immediately following the third Friday of the expiration month.
Expiration Months: Generally, two near-term months and two months from the March quarterly cycle (March, June, September and December). LEAPS may also be available.
Last Trading Day: Trading in Options on ETFs and HOLDRs will ordinarily cease at the close on the business day (usually a Friday) preceding the expiration date.
Exercise Style: American - Options on ETFs and HOLDRs generally may be exercised on any business day before the expiration date.
Settlement of Option Exercise: Physical Delivery. Exercise notices properly tendered on any business day will result in delivery of ETF or HOLDRs shares on the third business day following exercise.
Margin: Uncovered writers must deposit 100% of the options proceeds plus 15% of the aggregate contract value (current ETF or HOLDRs price multiplied by $100) minus the amount by which the option is out-of-the-money, if any. Minimum margin is 100% of the option proceeds plus 10% of the aggregate contract value. Long puts or calls must be paid in full.
Position Limts: For position limits on Options on ETFs and HOLDRs, visit the Options Clearing Corporation's web site.
Trading Hours for Options on ETFs & HOLDRS:
Click here for trading hours for individual Options on ETFs and HOLDRs.