Stock Options

American

9.00 am - 5.40 pm

Stock option contracts are quoted in Euro

The premium is settled in cash only, the first business day after the trading day by the clearing and settlement organisation Cassa di Compensazione e Garanzia

The size of the contract is determined by the product of the strike price (in Euro) and the respective lot
Example: if the price of an option on Fiat with strike price of 31.45 € is equal to 0.6500 €, the contract size is 31.45 € x 500 =15.725 €

The premium paid is equal to the value of the option premium multiplied by the respective lot
Example: if the price of an option on Fiat with strike price of 31.45 € is equal to 0.6500 €, the premium is 0.6500 € x 500 = 325 €

The tick is 0.0005 €

10 expiries: the 2 nearest monthly expiries, the 4 following quarterly expiries of the 'March, June, September and December' cycle thereafter, and the 4 following six-month expiries of the 'June and December' cycle thereafter. A new monthly (quarterly or six-month) expiry is quoted on the first trading day following expiry

The contract expires on the third Friday of the expiration month at 8.15 am. If the Exchange is closed that day, the contract expires on the first trading day preceding that day

Trading in any contract closes the day before expiry at 5.40 pm

The daily closing price is established by the clearing and settlement organisation Cassa di Compensazione e Garanzia

The settlement price is the closing auction price of the underlying share on the last trading day

Exercising an early option is possible during any trading day from the first to the last trading day. Early exercise is suspended under the following conditions:

1. on the trading day before dividends of the underlying stock are paid
2. on the trading day before any operations on the capital of the underlying stock
3. on the last day of a total public offer

Borsa Italiana gives notice of suspension of early exercise of the option if the Exchange has suspended trading in the underlying stock of the option.
In-the-money options are exercised automatically on expiration day.
Exercise by exception is possible up to 8.15am on the expiration day. When the option buyer exercises his option, the Cassa di Compensazione e Garanzia designates the writer by means of a draw

Settlement is by delivery (in the Stanza di Compensazione) of the financial instruments specified in the contract, through the clearing and settlement organisation Cassa di Compensazione e Garanzia, taking into consideration the number of contracts exercised and the minimum lot. Delivery date coincides with the third trading day after early exercise or expiration date

None

Exercise prices are generated at intervals as shown in the table below:

Margin table

Available