Shares of eligible stock, subject to criteria of eligibility set by the Canadian Derivatives Clearing Corporation.
Criteria of eligibility
Underlying interest must meet stringent eligibility requirements, including sufficient liquidity and market capitalization.
1 contract = 100 shares (may be adjusted for stock splits, distributions, etc.)
Listing under short cycle (the next three consecutive calendar months). Equity options classes will move from the short cycle to the regular cycle depending on a daily average volume.
Regular full cycle: two nearest months plus two quarterly months as defined in the expiry cycle.
Annual expiry of January for terms of one year or greater (long-term options).
Last trading day / Expiration
Equity options trading ceases on the 3rd Friday of the contract month, providing it be a business day; if not, the 1st preceding day. Options expire on the last trading day.
Minimum price fluctuation
- Minimum fluctuations of C$0.01 for option price lower than C$0.10
- Minimum fluctuations of C$0.05 for option price equal or higher than C$0.10
The premium per contract is obtained by multiplying the quote by 100 (e.g.: quote of C$2.75 × 100 = C$275).
Since July 27, 2007, certain options classes are subject to new minimum quotation spreads. For more information on penny trading, refer to circular 031-13.
250 option contracts.
Information on position limits can be obtained from the Exchange as they are subject to periodic changes. See Circulars.
A trading halt will be invoked in conjunction with the triggering of "circuit breakers" in the underlying.
5 strike prices bracketing the current underlying market price.
Premium and margin have to be settled the next business day following the transaction.
Via the Canadian Derivatives Clearing Corporation (CDCC)
Via the CDS Clearing and Depository Services Inc., on the 3rd business day following the exercise date.
Trading hours (Montréal time)
9:30* a.m. to 4:00 p.m.
* The regular session of the equity option market will open at 9:30 a.m. Each option class will then open for trading when a trade occurs on its underlying security on a recognized Canadian exchange. If no such trade has yet occurred, the option class will open for trading at 9:35 a.m.
Canadian Derivatives Clearing Corporation (CDCC)
- Buying calls instead of buying stocks
- Buying calls as protection for future purchases
- Buying calls to hedge a short sale (protective calls)
- Writing covered calls
- Buying puts instead of short selling stocks
- Buying puts as an insurance policy (protective puts)
- Writing secured puts
- Writing covered straddles
- Long straddle
- Bear call spread (credit call spread or vertical spread)
- Bull call spread (debit call spread or vertical spread)
- Bear put spread (debit put spread or vertical spread)
- Bull put spread (credit put spread or vertical spread)
- Repair strategy