New OCC ITM options auto exercise rule

Discussion in 'Options' started by a529612, Sep 30, 2006.

  1. The Options Clearing Corporation (OCC) rules governing the automatic exercise of in-the-money equity options at expiration are changing.

    Effective Saturday, October 21, 2006, any equity option that is $0.05 or greater in the money at expiration will be automatically exercised.(1) The previous threshold was $0.25.

    For example, an October 25 call will be automatically exercised if the underlying security's closing price is $25.05 or greater at expiration.
     
  2. ktm

    ktm

    I don't know that it could at this point, although penny increments are being discussed.
     
  3. billp

    billp

    Interesting