NYSE Amex Options
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ETF Option Contract Specifications | HOLDRS Option Contract Specifications

HOLDRS Option Specifications

Description HOLDRS options are standardized put and call options on underlying HOLDRS. HOLDRS are Depositary Receipts issued by the HOLDRS Trust representing individual and undivided ownership interest in the common stock of specified underlying securities.
Trading Unit The minimum trade size is one option contract. Each contract represents 100 shares of the underlying HOLDRS. (Corporate actions, such as rights offerings, stock dividends, and mergers, can result in adjusted contracts representing something other than 100 shares of stock.)
Expiration Cycle Two consecutive near-term expiration months plus two successive months from the February cycle.
Expiration The Saturday following the third Friday of the expiration month.
Last Trading Day One business day prior to expiration (normally a Friday).
Exercising Options American style. Options may be exercised on any business day prior to expiration.
Delivery Method if Exercised Exercise notices properly tendered on any business day will result in delivery of the underlying HOLDRS on the third business day following exercise.
Exercise Price Intervals Exercise (strike) prices are set at $5.00 intervals bracketing the current value of the underlying HOLDRS up to $200. Above $200, exercise (strike) prices are set at $10.00 intervals bracketing the current value of the underlying HOLDRS.
Option Premium Quotations Stated in dollars and cents. Minimum price variant $0.05 (nickel) for series trading under $3.00 and $0.10 (dime) for series trading $3.00 and above. Beginning on or about 01/26/07, some option classes will different MPVs. For more information, view NYSE Amex Options participation in the Penny Pilot Program.
Settlement of Exercises Three business days following exercise.
Minimum Customer Margin for Uncovered Writers 100% of the market value of the option plus 20% of the value of the underlying security less any out-of-the-money amount, subject to a minimum of 100% of the market value of the option plus 10% of the value of the underlying security.
Trading Hours 9:30 a.m. to 4:00 p.m., New York time.
Trading System Specialist/Registered Options Trader.