Automatic exercise

Automatic exercise

A protection procedure whereby the Options Clearing Corporation attempts to protect the holder of an expiring in-the-money option by automatically exercising the option on behalf of the holder.

Automatic Exercise

The exercise of an in-the-money option without the holder's express authorization. That is, automatic exercise occurs at a certain point when the option is in-the-money even though the holder has not specifically requested the exercise. The Options Clearing Corporation practices automatic exercise when clearing option contracts, unless a holder requests otherwise.

automatic exercise

Exercise of an in-the-money option following expiration unless the holder issues instructions to the contrary.

Automatic exercise.

If you hold a call option, automatic exercise may occur if the contract is in-the-money by a certain amount.

In this case, an in-the-money contract is one where the strike price -- the price at which you would purchase the underlying instrument if the contract were exercised -- is lower than the market price of that instrument. Generally speaking, exercising your option in this situation would produce a profit on the transaction.

Certain options may be subject to automatic exercise authorized by the Options Clearing Corporation (OCC) unless you instruct them otherwise. Your brokerage firm may also have an automatic exercise policy.

Mentioned in ?
References in periodicals archive ?
Reflection becomes second nature, or an automatic exercise that has a purpose.
The maximum number of shares received related to the automatic exercise of the Class B warrants, if any, is one share per Class B warrant and will be determined by the stock price of the common stock prior to the termination date.
All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as the release of the proceeds of the private placement by the escrow agent to Vista; the automatic exercise of the Special Warrants; Vista's future business strategy, competitive strengths, goals, operations, plans, and potential project development; and other such matters are forward-looking statements and forward-looking information.
The company said that, should there be any settlement related to the automatic exercise of the warrants on June 15, 2009, it has elected, pursuant to Section 3.
00 per common share for a period of 24 months, subject to a forced exercise provision whereby Titan can call the automatic exercise of the warrants should Titan's common shares trade on the Exchange at a price of $4.
This timetable is meant to promote an orderly, automatic exercise process, avoiding the sale of a large block of shares all at once.
One other interesting tidbit to keep in mind is a new rule that requires the automatic exercise of options that are slightly in-the-money when they expire.
TSX: CCH, OTC Bulletin Board: CBLRF) ("Campbell") announces that since it was not able to give prior notice of the implementation of its rights offering to its shareholders within the time prescribed under the rules of the Toronto Stock Exchange, it is required to extend such rights offering to all its shareholders, including the subscribers of special warrants who became shareholders upon the automatic exercise of 125,000,000 Campbell special warrants on September 27, 2006.
If the agreements are not extended or if a replacement put option facility is not obtained, there will be an automatic exercise of the put to WestLB.
49 per share (assuming conversion of outstanding shares of preferred stock and automatic exercise of warrants from date of original issuance).
Confirming Automatic Exercise of Conversion Warrants
Following the completion of the Silver Wheaton transaction and the automatic exercise of the previously issued subscription receipts, Silver Wheaton will have approximately 724 million common shares and 87.

Full browser ?