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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

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Change to options trading

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email

Q: I received a message about a change to stock option expirations. What does it mean?

A: The Options Clearing Corporation (OCC) will now exercise expiring stock options that are worth at least $.05 The previous threshold was $0.25 (except for index options that remain at $.01) This is good news for investors who might otherwise miss receiving a small profit when the option expires worthless. The automatic execution will result in a deposit of the funds directly into your account. Investors can opt out of this program by notifying their brokerage firm. Keep in mind though, that the profit on 1000 shares on a $.05 movement is only $50, less commission. So this is not really a big deal for most investors.


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