Single stock options contracts start trading on Tadawul today

Derivatives Products in Saudi Capital Market

Product

Rollout Date

Index Futures (MT30)

Aug. 30, 2020

Single Stock Futures (SSFs)

July 4, 2022

SSOs

Nov. 27, 2023

Details of SSOs

Item

Details

Contract code

Single Stock Options (SSOs)

Underlying share

Aramco, Al Rajhi Bank, SABIC, stc

Contract Size

100  shares

Minimum price fluctuation–tick

SAR 0.01 valued at SAR 1

Contract months

Current month, next month and the next two quarters

Option Exercises

Manual exercise request can be entered by long position holder at any time between the trade date and expiry date and all ITM and ATM requests will be exercised

On the expiry date, all ITM and ATM strikes with open position will be automatically exercised and all OTM strikes will be rejected

On expiry date, members can deny exercise on any open position, which will expire with zero value

Assignment allocation for every exercise request will be done on a random basis

Minimum number of strike prices available

Minimum 4 ITM (in-the-money), 4 OTM (out-of-money) and 1 ATM (at-the-money) will always be available for trading. More strikes will be added if the underlying price moves significantly

Strike Prices

Underlying Price

Strike Price Intervals

0-25

SAR 1

25-50

SAR 2

50-100

SAR 5

100

SAR 10

Exercise Type

American style

Exercise Settlement Price

Closing price of underlying (applicable to Daily Exercise request and Exercise on expiry date)

Option Trade Premium & Exercise Settlements

T+1 for Derivatives MTM (Option premium MTM and Exercise/Assignment MTM in Derivatives will be settled on T+1)

Settlement Type

Physically Settled. Exercise Date +3 (E+3)

Price Decimals

2

Negotiated Deals

Yes

Market Making

Yes

Trading Hours

Pre-open (Opening Auction): 9:00 - 9:30

Open (Continuous trading): 9:30 – 15:30

Contract Expiration

Third Thursday of the expiry month. If it is a holiday, then the expiry will move backward to the previous trading day

SSOs Price

Contract 

Settlement Price*

Aramco 

7.54 

stc 

8.10 

Al Rajhi Bank 

20.49 

SABIC 

0.46