exercise limit

Exercise limit

Cap on the number of option contracts of any one class of contract that can be exercised within a five-day period contract. There are no restrictions on exercise for the last 10 trading days before expiry. A stock option's exercise limit varies with the volume of the underlying stock.

Exercise Limit

A rule on many derivative exchanges preventing the exercise of too many option contracts by one investor over a given period of time. The exercise limit usually lasts five days; that is, no person or company may exercise more than the stated number of options on the same underlying asset over any five business days. Exercise limits exist in order to promote market stability by preventing a single investor from taking over too much of a market too quickly.

exercise limit

The maximum number of option contracts that a holder can exercise during a specified period. This limit is established by the exchange on which the option trades.
References in periodicals archive ?
Campbell Soup Company (CPB) - These options will trade on the February expiration cycle; position and exercise limits have been set at 75,000 contracts.
BCE options will trade on the March expiration cycle with exercise limits set at 7,500,000 shares.
CBS Corp -- Class A options will trade on the February expiration cycle with exercise limits set at 75,000,000 shares.
InterDigital Communications Corporation (IDCC) will trade on the March expiration cycle; position and exercise limits have been set at 22,500 contracts.
Allegheny Energy options will trade on the January expiration cycle with exercise limits set at 25,000,000 shares.
These options will trade on the January expiration cycle; position and exercise limits have been set at 75,000 contracts.
Brink's options will trade on the March expiration cycle with exercise limits set at 7,500,000 shares.
Alpha Natural Resources options will trade on the March expiration cycle with exercise limits set at 20,000,000 shares.
ASML) - These options will trade on the January expiration cycle; position and exercise limits have been set at 75,000 contracts.
Convera Corp options will trade on the January expiration cycle with exercise limits set at 7,500,000 shares.
Industrial Select Sector SPDR Fund options will trade on the March expiration cycle with exercise limits set at 20,000,000 shares.
These options will trade on the March expiration cycle; position and exercise limits have been set at 22,500 contracts.