Capturing Digital Equity Structured Options

The two types of Digital options are the cash-or-nothing and the asset-or-nothing. Payout for a Digital is pre-determined at the beginning of the contract. The cash-or-nothing option pays a fixed amount of cash if the option expires in-the-money, while an asset-or-nothing pays the value of the underlying security.

Digitals can be Cash or Physical. The processing for Digitals is a manual process where the user will Exercise or Expire them. If Physical, then a Stock Trade is created. If Cash, then a Fee is created.

 Ⓘ   [NOTE: Physical settlement is only supported on asset-or-nothing quantity based options with a single equity underlying - not an equity index or basket]

 

Choose Trade > Equity > Equity Structured Option to open the Equity Structured Option worksheet, from Calypso Navigator or from the Trade Blotter.

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Select the Digital payout.

Equity Structured Option Trade Window - Sample Digital trade

See Capturing Equity Structured Options for general details.

 

Digital Details

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Enter the fields described below as needed.

 

Fields	Description
Digital Type	Select the type of digital: • Cash Or Nothing – for a fixed amount of cash. • Asset Or Nothing – for the value of the underlying security. If Asset Or Nothing is selected, the payment type Physical will become enabled in the Trade Settlement details. – Cash-settled asset-or-nothing options pay the underlying value at option maturity * quantity if the option is in the money. – Physically-settled asset-or-nothing options deliver the trade quantity in underlying shares.
Digital Amount / Digital Amount (%)	Enter the payout quantity / percentage.