FLEX® Equity Options Specifications*

Underlying Security: Any security upon which options currently trade can be eligible.

Type of Option: Put or call.

Strike (Exercise) Prices: Call option strike prices may be set at standard intervals only. Put option strikes may be specified in terms of a specific dollar amount rounded to the nearest $.10 or a percentage of the underlying security rounded to the nearest tick or minimum increment. A strike price specified as a percentage will be rounded to the nearest eighth.

Expiration Date: Any business day up to three years from the trade date, except that a FLEX® option may not expire on any day that falls on or within two business days of a non-FLEX® option expiration date. For example, if Saturday, July 18, represents the expiration date for July equity options, FLEX® options may not be established to expire on Thursday, July 16, Friday, July 17, Monday, July 20 and Tuesday, July 21. Further, a FLEX® equity option may not be established to expire on the same day as the trade date.

Exercise Style: American or European.

Minimum Opening Transaction Size: If there is no open interest in the particular series when an RFQ is submitted, the minimum size of an RFQ is :
(i) $10 million underlying equivalent value, reflecting FLEX market index options, and $5 million underlying equivalent value reflecting FLEX industry index options; and
(ii) the lesser of 250 contracts or the number of contracts having $1 million of underlying equivalent value, with respect to FLEX equity options.

Minimum Closing Transaction Size: The lesser of 25 contracts and the remaining size.

Position and Exercise Limits: FLEX® equity options are not subject to a separate FLEX® position limit and positions in FLEX® equity options are not taken into account when calculating the position limits for non-FLEX® options. However, position limits which exceed three times the non-FLEX® position / exercise limit must be reported to the Exchange.

Settlement: Physical delivery.

*Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (“ODD”). Copies of the ODD are available from your broker, by calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, IL 60606. The information on this Website is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions which should be referred to for additional detail and are subject to changes that may not be reflected in the Website information. The Philadelphia Stock Exchange assumes no responsibility for any errors or omissions in the Website. No statement within the Website should be construed as a recommendation to buy or sell a security or to provide investment advice.