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 ?
The gadgets using a PurePulse heart rate technology provides automatic exercise recognition and new advancements in sleep tracking with up to 7 days' battery life.
Automatic exercise tracking that records activities such as walking, running, cycling, elliptical, sports and aerobic workouts.
rate tracking and SmartTrack automatic exercise recognition.
Enhanced fitness features like FitStar TM by Fitbit(R) on-screen workouts, Connected GPS, PurePulse(R) heart rate tracking, and SmartTrack TM automatic exercise recognition help motivate and push your fitness further
Canada-based global financial institution, CIBC (TSX: CM) (NYSE: CM), has said that its president and CEO, Victor Dodig, has, established a pre-arranged plan for the automatic exercise of options.
30 September 2014 - Toronto-based financial services firm CIBC (TSX: CM) (NYSE: CM) said that president and CEO Victor Dodig has established a pre-arranged plan for the automatic exercise of options.
According to behavioral study, the whole procedure of electrophysiologic/microdialysis experiment was divided into 5 conditions: rest condition; automatic exercise condition (15min after the start of exercise); 'early fatigue' condition; exhaustion condition and early period of recovery condition (30min after exhaustion), raw trace of electrophysiological signals under different conditions are as shown in Figure 4.
The maximum number of stock 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 shares prior to the termination date, the company said.
Reflection becomes second nature, or an automatic exercise that has a purpose.
A successor to the Fitbit Alta, Fitbit Alta HR is the world's slimmest wrist-band which combines the benefits of PurePulse heart rate technology, automatic exercise recognition and new advancements in sleep tracking with upto 7 days' battery life.
The Blaze smart watch gives users a heart-rate monitor, GPS for real-time run tracking, automatic exercise recognition capability and sleep monitoring, as well as customizable clock faces.

Full browser ?