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 ?
When it went public on September 17, 1998, BROKAT introduced a stock option plan, which was required under German law to be subject to an exercise limit such as the Neuer Markt Index.
At the time of market listing (September 17, 1998), BROKAT had established an employee stock option program that, according to German law, must include an exercise limit.
Researchers have found that repeatedly pushing the body close to its exercise limits for very brief periods, interspersed with periods of rest, is more effective than continuous moderate activity at improving cardiovascular, respiratory, metabolic, and mechanical functions.
For example, Beraprost, an oral prostaglandin is proving helpful in extending exercise limits (Harvey, S.
If your exercise limits on the stress test are poor, you have weak heart muscle or considerable blood-flow restrictions on imaging, you may be referred to a catheterization lab for coronary angiography, in which the cardiologist images the coronary arteries via dye through a tiny catheter.
56(b)(3), an ISO stock sale made in the same tax year that the ISO was exercised eliminates AMT gain; a sale within one calendar year of" exercise limits compensation income for regular tax purposes to the stock's sales price, minus its adjusted basis, according to Sec.
Position and exercise limits have been set at 7,500 contracts.
American Oriental Bioengineering options trade on the January expiration cycle with exercise limits set at 25,000 contracts on each side.
Additional information about ISE's indexes, including exercise limits, methodology guides, component lists and weightings, performance metrics and historical data is available on ISE's website, www.
Additional information about the index, including exercise limits, methodology guides, component lists and weightings, performance metrics and historical data is available on ISE's website, www.
The Standard & Poor's SmallCap 600 (SML), ISE's first index options product, was listed for trading on October 3, 2003 in bin 10 on a March expiration cycle with position and exercise limits of 100,000 contracts.
Jet Blue's options will trade on a March expiration cycle with position and exercise limits of 31,500 contracts.