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Item
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Description
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Underlying
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Common stocks or exchange-traded funds (ETFs) listed on Taiwan Stock Exchange or Taipei Exchange.
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Contract Name
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Equity options
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Ticker Symbol
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Each option is assigned a ticker symbol.
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Contract Unit
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Common Stocks：2,000 shares of underlying security.
Exchange-traded securities investment trust funds：10,000 beneficial units of underlying security.
Offshore ETFs：Contract size will be determined by TAIFEX.
(Unless in the case of Contract Adjustments)
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Exercise Style
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European
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Expiration Months / Weeks
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●Monthly contracts
1. Spot month and the next calendar month (near month contracts) and the next quarterly month (quarterly month contract), such that there are contracts of three expiration months traded on the market concurrently.
2. The initial trading day for a contract of a new expiration month is the next business day following the last trading day of the expiring month contract.
● Weekly contracts
A new weekly contract may be listed on Wednesday with that day as the initial trading day and the second following Wednesday as the last trading day. However, weekly contracts that would have the same last trading day as monthly contracts shall not be listed.
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Strike Price Interval
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Strike Price
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The Weekly and Monthly Options Interval (Spot month and the next calendar month)
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The Quarterly Options Interval (The next quarterly month)
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NTD 2 or above, but below NTD 10 (The minimum strike price is NTD 2.)
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NTD 0.2
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NTD 0.4
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NTD 10 or above, but below NTD 26
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NTD 0.5
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NTD 1
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NTD 26 or above, but below NTD 50
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NTD 1
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NTD 2
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NTD 50 or above, but below NTD 100
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NTD 2.5
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NTD 5
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NTD 100 or above, but below NTD 260
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NTD 5
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NTD 10
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NTD 260 or above, but below NTD 1,000
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NTD 10
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NTD 20
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NTD 1,000 or above, but below NTD 2,000
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NTD 20
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NTD100
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NTD 2,000 or above
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NTD 50
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Strike(Exercise) Price
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For listing series of new expiration months or weeks, or series with new strike prices for existing expirations dates, TAIFEX shall, based on the given day's opening reference price of the underlying securities, consecutively introduce series with new strike prices according to the strike price interval above, until the highest and lowest strike prices cover 15 percent above and below the base price.
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Premium Quotation
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Contract premium is quoted by points
Premium< 5 points: 0.01 points
Premium≧5 points,<15 points: 0.05 points
Premium≧15 points,<50 points: 0.1 points
Premium≧50 points, <150 points: 0.5 points
Premium≧150 points, <1000 points: 1 point
Premium≧1,000 points: 5 points
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Daily Price Limit
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● If the underlying security is a stock or a domestic component securities ETF, the price limit of the premium (in points) shall be calculated as the daily price limit of the underlying assets divided by the premium multiplier.
● If the underlying security is a foreign component securities bond ETF, the price limit of the premium shall be subject to a three-stage price limit of ±5%, ±10%, and ±15% of the opening reference price of the underlying security on that day.
● If the underlying security is a foreign component securities ETF other than as referred to in the preceding item, or is an offshore ETF, the price limit of the premium shall be subject to a three-stage price limit of ±7%, ±10%, and ±15% of the opening reference price of the underlying security on that day.
● The price limits of the premium as set forth in the preceding three items may be adjusted when a stock option contract is subject to contract adjustment in accordance with applicable regulations.
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Trading Hours
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Underlying security of a Stock Option Contract is a stock or a domestic component securities ETF：08:45AM - 1:45PM Taiwan time Monday through Friday of the regular business days of the Underlying
Underlying security is a foreign component securities ETF or an offshore ETF：
08:45AM - 4:15PM Taiwan time Monday through Friday of the regular business days of the Underlying
08:45AM - 1:30PM on the last trading day for the delivery contract
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Last Trading Day
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● For the monthly contracts, the last trading day is the third Wednesday of the delivery month.
● For the weekly contracts, the last trading day of a weekly contract is the second Wednesday following its listing day.
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Expiration Day
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The same as the last trading day
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Settlement
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Cash settlement
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Final Settlement Price
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The price is computed by applying the Simple Arithmetic Average Price Method to price of the underlying stock taken within 60 minutes prior to close of trading. Method used to calculate final settlement price.
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Position Limit
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Any investor's aggregate open same-side positions in the Contract for various contract months at any time shall not exceed the limit standards announced by TAIFEX.
Institutional investors may apply for an exemption for hedging purposes.
These position limits are not applicable to omnibus accounts, with the exception of undisclosed omnibus accounts, which accounts are subject to the limits for institutional investors.
If the underlying security is a common stock and the number of shares represented by the overall market open positions of a single stock futures and an equity option on the same underlying security at the close of any trading day exceeds 15 percent of the total number of outstanding shares of the underlying security, TAIFEX may impose a restriction on adding new positions and only allow closing out existing positions on the following trading day, unless otherwise provided. TAIFEX may lift the restriction on the next trading day when the aforesaid percentage of such contracts has fallen to a level below 12 percent.
If the underlying security is an exchange-traded securities investment trust fund and the number of beneficial units represented by the overall market open positions of a single stock futures and an equity option on the same underlying security at the close of any trading day exceeds 70 percent of the total number of beneficial units already issued by the fund, TAIFEX may impose a restriction on adding new positions and only allow closing out existing positions on the following trading day, unless otherwise provided. TAIFEX may lift the restriction on the next trading day when the aforesaid percentage of such contracts has fallen to a level below 56 percent.
If the underlying security is an offshore ETF and the number of units represented by the overall market open positions of a single stock futures and an equity option on the same underlying security at the close of any trading day exceeds 70 percent of the total number of units of that fund offered and sold domestically within the ROC territory, TAIFEX may impose a restriction on adding new positions and only allow closing out existing positions on the following trading day, unless otherwise provided. TAIFEX may lift the restriction on the next trading day when the aforesaid percentage of such contracts has fallen to a level below 56 percent.
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