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Jumbo Options Product Specifications

Description

Jumbo options represent a deliverable of 1000 shares per contract of an underlying security, whereas standard contracts represent deliverables of 100 shares per contract.

Units of Trade

1000 shares per option contract.

Premium Quotations

Stated in points. One point equals $1000.

Strike Price Intervals

In general, jumbo-option strikes mimic existing option strikes in that regular series.

Exercise Style

American-style. Options may be exercised on any business day prior to the expiration date.

Exercise Settlement Time

Exercise notices tendered on any business day will result in delivery of the underlying shares on the second (T+2) business day following exercise.

Expiration Months

Jumbo options are listed on the same cycle as the product's standard options. Weekly and quarterly expirations may also be listed.

Expiration Dates

Monthly jumbo options expire on the third Friday of the expiration month. Weekly jumbo options that expire on Fridays may also be listed. If an exchange holiday occurs on that Friday, weekly jumbo options will expire on the preceding Thursday. Quarterly expirations are listed in some ETFs and index products that may list jumbo options. They will expire on the last business day of the financial quarter in March, June, September and December.

Position Limits

For purposes of compliance with the position limit rules, one jumbo option contract equals ten standard contracts overlying 100 shares. Investors may check Position Limit reports from OCC's website for more information.

Minimum Customer Margin

Purchases of puts or calls with nine months or less until expiration must be paid for in full. Writers of uncovered 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

Jumbo options will have the same trading times as standard options on that product.