Shares of eligible stock, subject to eligibility criteria set by the Canadian Derivatives Clearing Corporation (CDCC).
Underlying issues must meet stringent eligibility requirements, including sufficient liquidity and market capitalisation.
One contract represents 100 shares (may be adjusted for stock splits, distributions, etc.).
At a minimum, the two nearest expiries plus the next two quarterly expiries as defined in the expiry cycle. Annual expiry of January for long term options.
Minimum fluctuation of the option premium
- Options priced below C$0.10 = C$0.01
- Options priced at C$0.10 or more = C$0.05
The premium per contract is obtained by multiplying the quote by 100 (e.g.: quote of C$2.75 × 100 = C$275).
For more information on penny trading, refer to circular 018-15.
At a minimum, five strike prices bracketing the current underlying issue's market price.
Last trading day
The third Friday of the contract month, provided it is a business day. If it is not a business day, the first preceding business day.
The last trading day of the contract month.
Position reporting threshold
250 option contracts.
Information on position limits can be obtained from the Bourse as they are subject to periodic changes. See Circulars.
A trading halt will be invoked in conjunction with the triggering of "circuit breakers" on the underlying issues.
Via the Canadian Derivatives Clearing Corporation (CDCC).
Via the CDS Clearing and Depository Services Inc., on the third business day following the exercise date.
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.
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