The Guidelines of Stock Options Trading Settlement and Exercise

• 1. Margin / Premium Requirements
  • 1.1 The settlement day for stock options is T+1. Clients must deposit the option premium or margin into their stock options account by 3:30 PM on the next trading day (T+1) after trading stock options. Otherwise, the Company reserves the right to execute a mandatory liquidation without prior notice to the client in order to reach the required margin level.
  • 1.2 When clients execute covered call transactions (i.e., selling a call option while holding an equivalent amount of the underlying stock), they must notify the Company to transfer the relevant stocks from their stock account to their stock options account as a hedge before placing the sell order. Margin requirements are waived for properly established covered positions.
  • 1.3 Intraday Margin Calls:
    When a client's net asset value falls below the initial margin, the Company will issue an intraday margin call. Clients are required to deposit sufficient margin by 3:30 PM on the same day, or fulfill the margin requirement by closing out positions before the market closes. If a client's net asset value falls below 50% of initial margin, the Company reserves the right to execute a mandatory liquidation to meet the required margin level. The client shall bear all related risks and losses.
     
• 2. Exercise and Assignment of Options
  • 2.1 Voluntary Exercise of Options:
    If a client wishes to exercise a call or put option voluntarily, the client must notify the Company via email and complete the application by 4:30 PM on the same day. Additionally, sufficient funds or the underlying securities must be deposited prior to exercise for settlement purposes; otherwise, the exercise instruction may be cancelled.
  • 2.2 Options Assignment:
    If a client holds a short put option that is assigned, the client is required to deposit sufficient funds into the client’s stock account by the next trading day (T+1) for settlement.
    Clients must hold the underlying stocks prior to opening a short call position in order to fulfill stock settlement obligations.
  • 2.3 Automatic Exercise of Options:
    Any open or unexercised long options contracts that are 1.5% or more in-the-money (ITM) upon expiration will be automatically exercised. The ITM percentage is subject to the exchange's determination in its full discretion and announcement from time to time.
     

If clients have any inquiries or questions, please feel free to call the Company at any time.
Our Hotline: 2235-7789 (Hong Kong) / 3001-200-311 (Mainland China)

 

• Stock Options Trading Fee and Commissions

  Trading Charges and Commissions of stock options
  Item	Rates	Remarks
  Brokerage	0.2% - 0.5%	Min $80.00
  Trading Tariff	HK$3.00 per contract(Tier 1) HK$1.00 per contract(Tier 2)） HK$0.50 per contract(Tier 3)	HK Exchange charge
  Exercise Fee	HK $2.00 per contract
  Amendment Exercise Instruction	$3.00 per Contract
  Other Instruction	$5.00 per Contract
  Assignment/Exercise Brokerage	Transaction value *0.25%	Min $80.00
  Stamp Duty	$1.00 per $1,000.00 on transaction value	Value rounded up to the nearest dollars
  Stock Exchange Trading Fee SFC Transaction Levy	Transaction value *0.005% Transaction value *0.0027%	Both seller and buyer need to pay
  Clearing Fee	Transaction value *0.003%	Min $2.00
  Cover Call Option	@0.005% on value at previous trading day	Min $20.00 Max $200.00
  Minimum Margin Requirement	$20,000.00
  *For other charges please refer to Schedule of Charges for trading of securities

  
   
• The List of Stock Option Classes Available for Trading
  The List of Stock Option Classes Available for Trading, please refer to the HKEx.
  The List of Stock Option Classes Available for Trading
   
• Client Margin Estimate Reference Table
  HKEx provisions of the stock option margin requirements
  Stock Options Minimum Margin Table