Weekly Options on Equity | B3
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Equities

Weekly Options on Equity

  • Weekly Options on Equities are derivatives developed to mitigate prices changes, offering a protection mechanism to participants against possible losses. In addition, it allows different types of speculative strategies regarding price movements and increasing its exposure to a specific market with little capital.

    Weekly options on Equities will expire Every Friday of the month, except on the 3rd Friday.

    The objective of the Weekly options will be to expand the possibilities of strategies to investors through a wide variety of expirations and time to expiry, offering new alternatives to manage more efficiently investors’ portfolios.

     

  • UnderlyingEquities
    TickerAAAABCCCWn - (AAAA) Company's ticker, (B) options' style and expiration, (CCC) option series, 1 to 3 and (Wn) identification of week of expiration, 1 to 5
    Exemplos: B3SAB11W1: B3SA3 Call option (ON) with expiration on the 1st Friday of February.
    B3SAN110W5: B3SA3 Put Option (ON) with expiration on the 5th Friday of February
    Option styleCall Options: American and European
    Put Options: European
    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 sizeBRL 0,01
    Last trading dayShall be the day of the expiration date.
    Expiration dateEvery Friday of the month, except the 3rd Friday.

    Every week of the month, except on the week of the 3rd Friday
    Option exerciseI. 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.
    • New strategies, diversification of investments and arbitrage
    • Possibility of hedging stock positions in specific weeks.
    • Possibility of investment with limited capital.
    • New expirations every Friday, except on the 3rd Friday of the Month.