My Dream
Full time employment: Posting here.
I received this notice in our TDW account and have absolutely no idea what it means. I don't even know if it pertains to me. I presently have some self-directed RSP's, mutual funds and 2 stocks with them. Can someone tell me and if I should act on it and if so…….what the heck does it mean? Please be gentle on the explanation since as you can see on your left, I am a newbie to investing.
Important Changes to “in-the-money” Equity Options
16-Oct-2006 9:00:00 AM EDT
Starting with the October 2006 expiry, the OCC and CDCC (US and Canadian option clearing corporations, respectively) will be reducing the automatic threshold for "in-the-money" equity options from $0.25 to $0.05.
IMPACT: The probability of being exercised (on a long position) or being assigned (on a short position) will increase substantially. Long or short equity positions held into expiry run a greater chance of being auto-exercised or assigned if the underlying equity is in-the money by more than $0.05.
If you wish to avoid being auto-exercised, you have two options:
1. Close out your positions before the option's cessation of trading; or,
2. If you have long positions, contact the Options Desk at the number below and provide instructions to " DO NOT EXERCISE.”
Thanks
Important Changes to “in-the-money” Equity Options
16-Oct-2006 9:00:00 AM EDT
Starting with the October 2006 expiry, the OCC and CDCC (US and Canadian option clearing corporations, respectively) will be reducing the automatic threshold for "in-the-money" equity options from $0.25 to $0.05.
IMPACT: The probability of being exercised (on a long position) or being assigned (on a short position) will increase substantially. Long or short equity positions held into expiry run a greater chance of being auto-exercised or assigned if the underlying equity is in-the money by more than $0.05.
If you wish to avoid being auto-exercised, you have two options:
1. Close out your positions before the option's cessation of trading; or,
2. If you have long positions, contact the Options Desk at the number below and provide instructions to " DO NOT EXERCISE.”
Thanks