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Title TAIFEX Stock Option Contract Specifications CH
Date 2023.11.07 ( Amended )

Article Content

1

Item

Description

Underlying

Common stocks or exchange-traded funds (ETFs) listed on Taiwan Stock Exchange or Taipei Exchange.                                   

Contract Name

Equity options

Ticker Symbol

Each option is assigned a ticker symbol.

Contract Unit

Common Stocks2,000 shares of underlying security.  

Exchange-traded securities investment trust funds10,000 beneficial units of underlying security.

Offshore ETFsContract size will be determined by TAIFEX.

(Unless in the case of Contract Adjustments)

Exercise Style

European

Contract Months

Spot month, the next calendar month, and the next  quarterly month, such that there are contracts of three expiration months traded on the market concurrently

Strike Price Interval

Strike Price

The Monthly Options Interval (Spot month and the next calendar month)

The Quarterly Options Interval (The next quarterly months)  

NTD 2 or above, but below NTD 10 (The minimum strike price is NT$2.)

NTD 0.2

NTD 0.4

NTD 10 or above, but below NTD 25

NTD 0.5

NTD 1

NTD 25 or above, but below NTD 50

NTD 1

NTD 2

NTD 50 or above, but below NTD 100

NTD 2.5

NTD 5

NTD 100 or above, but below NTD 250

NTD 5

NTD 10

NTD 250 or above, but below NTD 1,000

NTD 10

NTD 20

NTD 1,000 or above

NTD 50

NTD 100

Strike(Exercise) Price

For listing series of new expiration months 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.

Premium Quotation

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

Daily Price Limit

Common Stocks or ETFs comprising only domestic securitiesMaximum change of premium (in points) shall be maximum change of value of the underlying asset divided by premium multiplier.

ETFs comprising foreign securities or offshore ETFsMaximum change of premium (in points) shall be 15 percent above and below the opening quote of the underlying security (Unless in the case of contract adjustment).

Trading  Hours

Underlying Security of a Stock Option Contract is a stock or a domestic component securities ETF08:45AM - 1:45PM Taiwan time Monday through Friday of the regular business days of the Underlying

Underlying Security is an ETF with foreign component securities 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 month contract                    

Last Trading Day

The third Wednesday of the contract month

Expiration Day

The same as the last trading day

Settlement

Cash settlement

Final Settlement Price

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.

Position Limit

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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