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To exercise an option is to implement the rightunder which the holder of an option is entitled to buy (Calloption) or sell (Put option) the underlying security. Optionsare exercised through the IB Trader Workstation's Option Exercisewindow (accessible from the TWS View menu). For detailed instructionson exercising an option using the IB Trader Workstation, referto the TWS User's Guide.
Option Exercise Requests (whether received through an IB TWS Option Exercisewindow or by e-mail(1)) may be submitted as follows:
For Equity Option Contracts Traded upon: | Early Exercise | IB must receive an Exercise Request by: | |
North America | US Options Exchanges | N/A | 16:30 EST |
Montreal Exchange | N/A | 16:30 EST | |
Europe | Euronext | 19:15 CET | 19:45 CET |
Eurex (German and Swiss) | 19:00 CET | 21:00 CET | |
IDEM | 18:30 CET | 08:15 CET Stock Options | |
10:00 CET Index Options | |||
LIFFE | 17:20 GB-Eire | 18:30 GB-Eire | |
18:00 GB-Eire (ESX only) | |||
MEFF | 18:00 CET | 18:50 CET | |
Sweden | 17:20 GB-Eire | 18:20 GB-Eire | |
Asia Pacific | Australia | N/A | 17:15 Australia/NSW |
Notes:
- In the event that an option exercise cannot be submitted via the TWS, an option exercise request with all pertinent details (including option symbol, account number and exact quantity), should be created in a ticket via the Account Management window. In the Account Management window, click on “Inquiry/Problem Ticket”. The ticket should include the words “Option Exercise Request” in the subject line. Please provide a contact number and clearly state in your ticket why the TWS Option Exercise window was not available for use.
Expiration Friday Option ExerciseInstructions
Use the TWS Option Exercise window to either:(i) exercise an option prior to expiration, or (ii) deliver "contraryintentions" to the clearinghouse for the options held; e.g.,The Options Clearing Corporation (“OCC”) for optionstraded on U.S. options exchanges. You must also use the TWS OptionExercise window to instruct the clearinghouse to exercise anoption contrary to the clearinghouse’s accepted policyon an options Expiration day (e.g., Expiration Friday for USoptions). If you do not use the TWS Option Exercise window tomanually manipulate options, the clearinghouse will handle theexercise automatically in the manner described below:
OCC (USA) |
FOR EQUITY OPTIONS TRADED ON US EXCHANGES AND CLEARED THROUGH OPTIONS CLEARING CORPORATION (OCC): |
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The OCC must receive "contrary intentions" through the TWS Option Exercise window if you want to:
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CDCC (Canada) |
FOR EQUITY OPTIONS TRADED ON CANADIAN EXCHANGES AND CLEARED THROUGH CANADIAN DERIVATIVES CLEARING CORPORATION (CDCC): |
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The CDCC must receive "contrary intentions" through the TWS Option Exercise window if you want to:
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ECC (Germany, Switzerland) |
FOR EQUITY OPTIONS TRADED ON EUREX AND CLEARED THROUGH EUREX CLEARING AG (ECC): |
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The ECC must receive "contrary intentions" through the TWS Option Exercise window if you want to:
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LCH (UK) |
FOR EQUITY OPTIONS TRADED ON LIFFE AND CLEARED THROUGH LONDON CLEARING HOUSE (LCH): |
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The LCH must receive "contrary intentions" through the TWS Option Exercise window if you want to:
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CNET (Belgium, France, Germany, Netherlands) |
FOR EQUITY OPTIONS TRADED ON EURONEXT AND CLEARED THROUGH CLEARNET SA (CNET): |
At this time, there is no support for “contrary intention” decisions, e.g. exercising out of money options, or not exercising in the money options. |