Equity Options (including Options on Canadian Depositary Receipts “CDRs”)

Underlying issues

Eligible Equity Securities, subject to criteria set by the Canadian Derivatives Clearing Corporation (CDCC).

Eligibility criteria

Underlying issues must meet stringent eligibility requirements, including sufficient liquidity and market capitalisation.

Trading unit

The trading unit is one contract, representing 100 shares of the underlying Equity Security.

Expiry cycle

Monthly expiries: at a minimum, the nearest four consecutive months. Plus the next four months in the designated quarterly Cycle: March, June, September and December.The Bourse may list expiries over a period of two years and an annual expiry in January under such expiry Cycle.
Weekly expiries: For options with weekly expiries, the expiration date shall be any of the five Fridays following the listing week which is a business day, but which is not an expiration day for any other Options already listed on the same underlying. If any such Friday is not a business day, then the expiration date will be the first preceding business day that is not an expiration day for any other Options already listed on the same Underlying Interest.
Long term expiries: annual expiry of January for long term Options.

Minimum fluctuation of the option premium

For options excluded from the penny trading program:

Option Series priced below $0.50 are quoted in increments of $0.01.
Option Series priced at $0.50 or more are quoted in increments of $0.05.

For options included in the penny trading program:

Option Series priced below $3.00 are quoted in increments of $0.01.
Option Series priced at $3.00 or more are quoted in increments of $0.05.

The premium per contract is obtained by multiplying the quote by 100 (e.g.: quote of C$2.75 × 100 = C$275).

Strike prices

At a minimum, five strike prices bracketing the current underlying issue's market price.

Contract type

American style. (physically settled)

Last trading day

For monthly expiries: trading ceases on the third Friday of the Delivery Month, provided it is a business day. If it is not a business day, trading will cease on the first preceding business day.
For weekly expiries: trading ceases on the Friday following the contract listing week, provided it is a business day. If it is not a business day, trading will cease on the first preceding business day.

Expiration day

Expiration day is equal to the last trading day.

Position reporting threshold

250 option contracts.

Position limit

Information can be obtained from the Regulatory Division as they are subject to periodic changes. See the position limits page on the Regulatory Division website.

Trading halt

A trading halt will be invoked in conjunction with the triggering of "circuit breakers" on the underlying issues.

Exercise

Via the Canadian Derivatives Clearing Corporation (CDCC).

Delivery

Via the CDS Clearing and Depository Services Inc., on the first business day following the exercise date.

Trading hours

9:30 a.m. to 4:00 p.m.

The regular session opens at 9:30 a.m. Each option class will then open for trading when a trade occurs on its underlying issue on a recognised Canadian exchange. If no such trade has yet occurred, the option class will open for trading at 9:35 a.m.

Clearing corporation

Canadian Derivatives Clearing Corporation (CDCC).

Trading procedures

Please refer to the Rules of the Bourse.

The information contained in this document is for information purposes only and shall not be construed as legally binding. This document is a summary of the product's specifications which are set forth in the Rules of Bourse de Montréal Inc. ("Rules of the Bourse"). While Bourse de Montréal Inc. endeavors to keep this document up to date, it does not guarantee that it is complete or accurate. In the event of discrepancies between the information contained in this document and the Rules of the Bourse, the latter shall prevail. The Rules of the Bourse must be consulted in all cases concerning products' specifications.