Options on Equities

  • Specifications
    UnderlyingEquities.
    Option styleEuropean or American.
    Contract sizeVolume of the option’s Underlying.
    QuotationOption premium, in Brazilian Reals, per unit or lot of the Underlying, depending on the quotation type, to two decimal places.
    Tick sizeBRL0.01.
    Last trading dayExpiration date until April/2021
    Shall be the day of the trading session immediately prior to the expiration date.

    Expiration date from May/2021
    Shall be the day of the expiration date.
    Expiration dateExpiration date until April/2021
    Third Monday of the expiration month. If there is no trading session on the date, the expiration shall occur on the immediately following day on which there is a trading session.

    Expiration date from May/2021
    Third Friday of the expiration month. If there is no trading session on the date, the expiration shall occur on the immediately preceding day on which there is a trading session.
    Contract monthsAll months.
    Option exerciseExpiration date until April/2021
    The exercise shall occur upon the request of the holder. If the exercise is not requested the option shall lapse, automatically extinguishing the rights of the holder and the obligations of the writer.

    Out-of-the-money options may also be exercised if the Underlying is close to the strike price, upon authorization by B3.

    Settlement of exercised positions shall be executed by the purchase of the Underlying by the holder and the sale of the Underlying by the writer at the strike price.

    American-style options may be blocked for exercise by the holder, pursuant to the provisions of the Clearinghouse Operating Procedures Manual.

    Expiration date from May/2021
    I. Manual Exercise
    The option is exercised manually when the holder notifies the writer that he intends to use his right to buy the underlying asset at the strike price.
    The option may be exercised even if the price of the underlying asset is less than the strike price, but in this case B3’s permission is required.

    II. Automatic Exercise
    On expiration date, option exercise will be performed automatically by B3 if:
    Call Option:
    a) the difference between the underlying asset’s reference price on the cash market and the option’s strike price is positive (option in the money); and
    b) the holder hasn’t blocked automatic exercise for his call option by request to B3 (Contrary Exercise).
    Put Option:
    a) the difference between the option’s strike price and the underlying asset’s reference price on the cash market is positive (option in the money); and
    b) the holder hasn’t blocked automatic exercise for his put option by request to B3 (Contrary Exercise).

    In-the-money options with automatic exercise blocked by the holder and writers’ option positions that are not exercised will be automatically extinguished.
    Settlement of the exercised position is performed by the option holder’s sale and the writer’s purchase of the underlying asset at the strike price.