Canadian Derivatives Exchange*

Weekly Options

Underlying issues

  1. Shares of eligible stock.*
  2. Units of eligible exchange-traded funds.*

* Eligible for options listing, as determined by the eligibility criteria determined by the Canadian Derivatives Clearing Corporation (CDCC).

Eligibility criteria

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

Trading unit / Multiplier

  1. One contract represents 100 shares (may be adjusted for stock splits, distributions, etc.)
  2. One contract represents 100 units of an exchange-traded fund (may be adjusted for stock splits, distributions, etc.)

Expiry cycle

Contracts are listed for trading at the open on Thursdays, provided it is a business day. If it is not a business day, listing will occur on the first preceding business day.

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 093-16.

Strike prices

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

Contract type

American style.

Last trading day

The expiration day.

Expiration day

Any of the five Fridays following the listing week of the option, 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, the expiration day is the first preceding business day that is not an expiration day for any other options already listed on the same underlying.

Position reporting threshold

  1. 250 option contracts.
  2. 500 contracts on the same side of the market, in all contract months combined.

Position limit

Information on position limits can be obtained from the Bourse as they are subject to periodic changes. See Circulars.

Price limit

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 third 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

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.