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Stock options

Characteristic

Description

Underlying

Shares traded on Borsa Italiana’s equity market

Trading hours

- Opening Auction: 7.30 - 9.01 (9.01.00 - 9.01.30)

- Continuous Trading: 9.01 - 17.30

- Large-in-Scale Trade Facility (LiS): 7.30 - 18.30

Option style

American and/or European

Settlement

American style options: physically settled
European style options: physically and/or cash settled, depending on the underlying

Quotations

Euro

Tick size (in €)

Option premium	On-book trading and Orders to execute Negotiated Transactions
<= € 0.005	0.0001
> € 0.005	0.0005

Multiplier

Depending on the underlying (Minimum lots table)

Contract size

Strike price x Multiplier

Option price (premium)

Option premium x Multiplier

Premium settlement

Settled in cash and paid on the Euronext Clearing open day following the trading day

Strike prices generation

Up to 12 months: 19 strike prices with intervals defined in the relevant table of Borsa Italiana’s Instructions
Beyond 12 months: 37 strike prices with intervals twice the size of the intervals for the respective series with expiries up to 12 months

Contract months

The 2 nearest monthly expiries and the 4 nearest quarterly expiries of the Mar/Jun/Sep/Dec cycle. Moreover, for some underlyings defined by Borsa Italiana’s Market Notice, the 4 or 8 or 12 nearest successive semi-annual contracts month’s expiry of the Jun/Dec cycle are also available

Expiry day

The third Friday of expiry month at 8.15. If the Exchange is closed on that day, the contract expires on the first trading day preceding that day

Last trading day

The trading day before the expiry day at 17:30

Exercise at expiry day

Automatic exercise executed by Euronext Clearing on ITM options. For physically settled contracts only, exercise by exception is allowed as well by no later than 8.15 on the expiry day

Daily settlement price

Defined by Euronext Clearing on the basis of the theoretical value of the implied volatility calculated from the best bid/ask quotations observed on the market during a significant trading period, taking into account the other factors influencing the option theoretical value

Settlement day

for cash settled contracts: the first open Euronext Clearing calendar day following the expiry day
for physically settled contracts: the second open TARGET calendar day following the expiry day

Early exercise

Every trading day before the expiry day by 18:30

Final settlement price

The closing auction price of the underlying share on the last trading day

Strategies

Preconfigured strategies

Unusual Contract Size

Where contracts have been affected by recent corporate actions resulting in currently tradable contracts being of a non-standard contract size, this information can be found in the document on this page.

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