Option Agreement

All new option accounts must be approved by the registered option and security futures principal prior to the first option trade. An option investor must sign and return the option agreement within 15 days of the account’s approval to trade options. If the investor fails to return the option agreement within 15 days, no new option positions may be opened and the investor will be limited to closing transactions only until the option agreement is signed and returned. By signing the option agreement, the customer agrees to notify the firm of any significant change in their finances and the customer:

Agrees to abide by all OCC and exchange rules

Acknowledges that they have received and read the OCC risk disclosure document

Understands any long options in the money by 1 cent or more at expiration will result in automatic exercise for the customer

Understands payment, exercise and assignment terms

 

OPTION ACCOUNT SUPERVISION

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