To exercise an option is to implement the right under which the holder of an option is entitled to buy (Call option) or sell (Put option) the underlying security. Options are exercised through the Sonray Global Trader Workstation's Option Exercise window (accessible from the TWS View menu). For detailed instructions on exercising an option using the Sonray Global Trader Workstation, refer to the TWS User's Guide.

Option Exercise Requests (whether received through an Sonray Global TWS Option Exercise window or by e-mail*) may be submitted as follows:

*An option exercise request may be e-mailed only in the event that the exercise cannot be submitted via the TWS. To request an exercise via email send your request to Sonray Global. Please provide a contact number and clearly state in your email why the TWS Option Exercise window was not available for use.

Expiration Friday Option Exercise Instructions

Use the TWS Option Exercise window to either:

(i) exercise an option prior to expiration, or

(ii) deliver "contrary intentions" to the clearinghouse for the options held; e.g., The Options Clearing Corporation (“OCC”) for options traded on U.S. options exchanges. You must also use the TWS Option Exercise window to instruct the clearinghouse to exercise an option contrary to the clearinghouse’s accepted policy) on an options Expiration day (e.g., Expiration Friday for US options). If you do not use the TWS Option Exercise window to manually manipulate options, the clearinghouse will handle the exercise automatically in the manner described below:
OCC ( USA)

FOR EQUITY OPTIONS TRADED ON US EXCHANGES AND CLEARED THROUGH OPTIONS CLEARING CORPORATION (OCC):

• Stock options expiring in the current month that are $0.25 or more in the money will be automatically exercised by the OCC without the need for any explicit instructions from Sonray Global.

• Index options expiring in the current month that are more than $.01 in the money will be automatically exercised by the OCC without the need for any explicit instructions from Sonray Global.

The OCC must receive "contrary intentions" through the TWS Option Exercise window if you want to:

• exercise a stock option that is in the money by LESS than $0.25

• exercise a stock option or index option that is out of the money

CDCC ( Canada)

FOR EQUITY OPTIONS TRADED ON CANADIAN EXCHANGES AND CLEARED THROUGH CANADIAN DERIVATIVES CLEARING CORPORATION (CDCC):

• Stock options expiring in the current month that are 0.25 CAD or more in the money will be automatically exercised by the CDCC without the need for any explicit instructions from Sonray Global.

 • Index options expiring in the current month that are more than 0.01 CAD in the money will be automatically exercised by the CDCC without the need for any explicit instructions from Sonray Global.

The CDCC must receive "contrary intentions" through the TWS Option Exercise window if you want to:

• exercise a stock option that is in the money by LESS than 0.25 CAD

• exercise a stock option or index option that is out of the money

ECC ( Germany,  Switzerland)

FOR EQUITY OPTIONS TRADED ON EUREX AND CLEARED THROUGH EUREX CLEARING AG (ECC):

• Stock options expiring in the current month that are more than 10 basis points in the money will be automatically exercised by the ECC without the need for any explicit instructions from Sonray Global.

• Index options expiring in the current month that are more than 10 basis points in the money will be automatically exercised by the ECC without the need for any explicit instructions from Sonray Global.
The ECC must receive "contrary intentions" through the TWS Option Exercise window if you want to:

• exercise a stock option that is in the money by 10 basis points OR LESS

• exercise a stock option or index option that is out of the money

LCH ( UK)

FOR EQUITY OPTIONS TRADED ON LIFFE AND CLEARED THROUGH LONDON CLEARING HOUSE (LCH):

• Stock options expiring in the current month that are more than 1 pence in the money will be automatically exercised by the LCH without the need for any explicit instructions from Sonray Global.

• Index options expiring in the current month that are more than 1 pence in the money will be automatically exercised by the LCH without the need for any explicit instructions from Sonray Global.
The LCH must receive "contrary intentions" through the TWS Option Exercise window if you want to:

• exercise a stock option that is in the money by 1 pence OR LESS

• exercise a stock option or index option that is out of the money

CNET ( Belgium,  France,  Germany,  Netherlands)

FOR EQUITY OPTIONS TRADED ON EURONEXT AND CLEARED THROUGH CLEARNET SA (CNET):

• € Stock options expiring in the current month that are more than 0.01 in the money will be automatically exercised by CNET without the need for any explicit instructions from SONRAY GLOBAL or SONRAY GLOBAL customers.

• € Index options expiring in the current month that are more than 0.01 in the money will be automatically exercised by the CNET without the need for any explicit instructions from SONRAY GLOBAL or SONRAY GLOBAL customers.

At this time, there is no support for “contrary intention” decisions, e.g. exercising out of money options, or not exercising in the money options.