HK Stock Options

Contract Specification

Product Name Please refer to the list of stock options
Option Types Puts and calls
Contract Size One board lot of the underlying shares
Contract Value Options premium x Contract size
Minimum Fluctuation HK $0.01
Contract Months Spot, the next two calendar months & the next two quarter months ^
Options Premium Quoted in HK dollars on a per share basis
Strike Prices Interval Group A Interval Group B #
HK$ HK$ HK$
Up to $2 $0.10 $0.10
$2 to $5 $0.20 $0.20
$5 to $10 $0.50 $0.50
$10 to $20 $1.00 $0.50
$20 to $50 $2.00 $1.00
$50 to $100 $5.00 $2.50
$100 to $200 $5.00 $2.50
$200 to $300 $10.00 $5.00
$300 to $500 $20.00 $20.00
Trading Hours 9:30am – 12:00pm & 1:00pm – 4:00pm
Expiry Day Business day immediately preceding the last business day of the contract month
Exercise Style (American) Options can be exercised at any time up to 3:00 p.m. on any trading day and including the last trading day
Settlement Physical delivery of underlying shares on exercise and settlement period are:
T + 1 (options premium, payable in full) or
T + 2 (stock transfer following exercise)

^ The Exchange may introduce a third calendar quarter month and any other longer-dated expiry month in selected stock option classes as it deems necessary.

# Interval Group B Stock Option Classes as follows:

  1. CK Hutchison Holdings Ltd
  2. China Mobile (Hong Kong) Ltd
  3. Hang Seng Bank Ltd
  4. HSBC Holdings Plc
  5. Sun Hung Kai Properties Ltd
  6. Tracker Fund HK

 

Risk of Futures and Options Trading

Risk of Futures Trading

While futures trading can make substantial profits, it can also lead to equally significant losses in a short period of time. Futures trading is only for sophisticated and more disciplined investors who can afford potential losses should he find himself on the wrong side of a market.

At the end of each trading day, your position is "marked to market", or valued according to the contract's market value at the end of the day. If the contract price moves against your view so the initial margin deposit falls below the maintenance margin level, we will normally issue a margin call. This means you will have to deposit additional money to restore the initial margin level. If you don't do this, we may liquidate your position at market. You will have to bear any loss arising from the forced liquidation.

Risk of Options Trading

Longing and shorting options are two different strategies. An option holder, who takes the long position, pays a premium to the option's writer. If performance of the underlying asset goes against the holder, his maximum loss will be limited to the premium paid.

An option writer, who takes the short position, receives a premium from the holder. In exchange, he takes up the obligation to settle the contract as specified when the holder exercises the option. If the market goes against the option writer, he may suffer a substantial loss exceeding the premium received.

Remember to evaluate your risk tolerance level before taking up a position.

Investor Education

For more details regarding the natures of the above products, you can visit the SFC’s website:
http://www.thechinfamily.hk/web/iec/en/index.html

The below list of stock options is subject to changes by the HKEx. Please refer to http://www.hkex.com.hk/eng/prod/drprod/so/classlist_so.htm for details.

No. SEHK Code Underlying Stock HKATS Code Contract Size
(Shares)
Tier No.* Position
Limit ##
1 1 CK Hutchison Holdings Ltd. CKH 500 1 50000
2 2 CLP Holdings Limited CLP 500 1 50000
3 3 The Hong Kong and China Gas Company Limited HKG 1000 2 50000
4 4 The Wharf (Holdings) Limited WHL 1000 1 50000
5 5 HSBC Holdings Plc. HKB 400 1 150000
6 6 Power Assets Holdings Limited HEH 500 1 50000
7 11 Hang Seng Bank Limited HSB 100 2 50000
8 12 Henderson Land Development Company Limited HLD 1000 1 50000
9 16 Sun Hung Kai Properties Limited SHK 1000 1 50000
10 17 New World Development Company Limited NWD 1000 2 150000
11 19 Swire Pacific Limited 'A' SWA 500 1 50000
12 23 The Bank of East Asia, Limited BEA 200 3 50000
13 27 Galaxy Entertainment Group Limited GLX 1000 1 100000
14 66 MTR Corporation Limited MTR 500 2 50000
15 135 Kunlun Energy Co. Ltd. KLE 2000 2 50000
16 151 Want Want China Holdings Ltd. WWC 1000 3 100000
17 267 CITIC Limited CIT 1000 2 50000
18 293 Cathay Pacific Airways Limited CPA 1000 2 50000
19 358 Jiangxi Copper Company Limited JXC 1000 2 100000
20 386 China Petroleum & Chemical Corporation CPC 2000 2 150000
21 388 Hong Kong Exchanges and Clearing Limited HEX 100 2 150000
22 390 China Railway Group Limited CRG 1000 3 150000
23 489 Dongfeng Motor Group Co. Ltd. DFM 2000 2 50000
24 494 Li & Fung Limited LIF 2000 3 100000
25 688 China Overseas Land & Investment Limited COL 2000 1 50000
26 700 Tencent Holdings Limited TCH 100 1 150000
27 728 China Telecom Corporation Limited CTC 2000 3 150000
28 762 China Unicom (Hong Kong) Limited CHU 2000 2 150000
29 857 PetroChina Company Limited PEC 2000 2 150000
30 883 CNOOC Limited CNC 1000 3 150000
31 902 Huaneng Power International, Inc. HNP 2000 2 100000
32 914 Anhui Conch Cement Company Limited ACC 500 2 150000
33 939 China Construction Bank Corporation CCB 1000 3 150000
34 941 China Mobile Limited CHT 500 1 150000
35 992 Lenovo Group Limited LEN 2000 3 150000
36 998 China CITIC Bank Corporation Limited CTB 1000 3 150000
37 1044 Hengan International Group Co. Ltd. HGN 500 1 30000
38 1088 China Shenhua Energy Company Limited@ CSE 500 3 150000
39 1109 China Resources Land Ltd. CRL 2000 1 50000
40 1171 Yanzhou Coal Mining Company Limited YZC 2000 2 50000
41 1186 China Railway Construction Corporation Limited CRC 500 3 150000
42 1211 BYD Company Limited BYD 500 1 100000
43 1398 Industrial and Commercial Bank of China Limited XIC 1000 1 150000
44 1800 China Communications Construction Company Limited CCC 1000 2 150000
45 1898 China Coal Energy Company Limited CCE 1000 3 150000
46 1919 COSCO Shipping Holdings Company Limited CCS 500 3 150000
47 1928 Sands China Ltd. SAN 400 2 150000
48 2038 FIH Mobile Limited FIH 1000 3 50000
49 2282 MGM China Holdings Limited MGM 400 2 100000
50 2318 Ping An Insurance (Group) Company of China, Ltd. PAI 500 1 150000
51 2319 China Mengniu Dairy Co. Ltd. MEN 1000 2 50000
52 2328 PICC Property and Casualty Company Limited PIC 2000 1 100000
53 2333 Great Wall Motor Co. Limited GWM 500 3 150000
54 2388 BOC Hong Kong (Holdings) Limited BOC 500 2 150000
55 2600 Aluminum Corporation of China Limited ALC 2000 2 150000
56 2628 China Life Insurance Company Limited CLI 1000 2 150000
57 2777 Guangzhou R&F Properties Co., Ltd. RFP 400 3 150000
58 2800 Tracker Fund of Hong Kong TRF 500 2 150000
59 2888 Standard Chartered PLC STC 50 3 150000
60 2899 Zijin Mining Group Company Limited ZJM 2000 3 150000
61 3323 China National Building Material Company Limited NBM 2000 2 150000
62 3328 Bank of Communications Co., Ltd. BCM 1000 3 150000
63 3888 Kingsoft Corporation Ltd. KSO 5000 2 50000
64 3968 China Merchants Bank Co., Ltd. CMB 1000 2 150000
65 3988 Bank of China Limited BCL 1000 3 150000

*Unless otherwise specified, tier levels of adjusted contracts shall be the same as their standard contracts.

@ Tier level of adjusted series of CSE (i.e. CSB) is Tier 3

## Position Limit represents the maximum number of open contracts a single party can hold for any stock option class in any one market direction for all expiry months combined.
(N.B. long calls/short puts combined are in one direction and short calls/long puts combined are in another direction)

Margin Requirement

Click Here to download the Margin Requirement.

HKEx Circular Link

http://www.hkex.com.hk/Services/Circulars-and-Notices/Participant-and-Members-Circulars?sc_lang=en

Clients should be fully aware of the related circular regarding the trading and clearing arrangements as well as the corresponding risks.