Explore
Close
Your acceptance of all cookies will permit robust site functionality. If you don't allow cookies, some features and functionality of OCC's site may not operate as expected. If you do not choose either cookie setting for our site, or if you close this window, this message will continue to display on each page you visit. Cookie settings can be controlled in your Internet browser to automatically reject some forms of cookies. For more details on cookies this site uses, see our OCC Site Cookies page. In addition to using cookies, we retain other information, including your Internet Protocol (IP) address, for the purposes listed in the Privacy Policy. Testing

FLEX Options

FLEX options are customizable products where the investor can set the terms for the tradable contract and have the security of an exchange-traded product. The exercise style, expiration date and strike price can all be chosen by the investor to create a new product that is not currently being traded at an exchange. In general, investors set the criteria and have their brokerage firm solicit the best possible market-price from different market participants.

Unit of Trade:  Equity or ETF: 100 shares per option contract; Index: One contract equals $100 (the index multiplier) times the index level.

Premium Quotations:  Stated in points. One point equals $100.

Strike Price Intervals: The investor selects the strike price for the FLEX contract.

Exercise Style: The investor chooses between either American or European exercise when the contract terms are chosen.

Exercise Settlement Time:  Equity and ETF FLEX settlement will occur on the second (T+2) business day following exercise. For Index FLEX, settlement will be the first business day following exercise.

Expiration Dates:  The investor selects the date for the FLEX options to expire, within exchange rules.

Exercise Settlement Price for Index FLEX:  Cash-settled FLEX options on index products will derive their settlement price depending on whether the investor has selected a.m. or p.m. settlement for that particular FLEX option. The dollar difference between the index settlement value and the strike price of the contract multiplied by 100 will be the value of the contract. (Note: See product specifications for each index as there may be different methods of calculation.)

Position Limits:  No position limits for equity or ETF FLEX, however reporting obligations do apply. Check with exchange for Index limits.

Minimum Customer Margin:  Purchases of puts or calls with nine months or less until expiration must be paid for in full. Writers of uncovered equity puts or calls must deposit / maintain 100% of the option proceeds* plus 20% of the aggregate contract value (current equity price x $100) minus the amount by which the option is out-of-the-money, if any, subject to a minimum for calls of option proceeds* plus 10% of the aggregate contract value and a minimum for puts of option proceeds* plus 10% of the aggregate exercise price amount. Margin requirements for index products and some broad-based ETFs may vary.
*For calculating maintenance margin, use the option's current market value instead of the option proceeds.

Trading Hours:  FLEX options will have the same trading hours as monthly options for that product.

This web site discusses exchange-traded options issued by The Options Clearing Corporation. No statement in this web site is to be construed as an endorsement, recommendation or solicitation to purchase or sell a security, or to provide investment advice. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of the disclosure document, Characteristics and Risks of Standardized Options. Individuals should not enter into option transactions until they have read and understood this document. To obtain copies, contact your broker, any exchange on which options are traded, or The Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 (investorservices@theocc.com).