Stock Option Trading News

Exercise by Exception Threshold Change

You may have been notified by your options broker of a recent change made to the OCC’s Exercise Threshold value for options expiration day. The SEC just accepted a proposal by the OCC to clear all options that are $0.05 In-the-Money at expiration. The previous Exercise Threshold Value had been $0.25 In-the-Money. So, what does this mean for stock options trading?