Exchange-traded shares can experience sharp price fluctuations. In order to prevent situations in which, due to price fluctuations, it would be impossible to trade options that are either "in" or "out-of-the-money", TASE opens deep in-the-money and out-of-the-money strikes.
Example:
The closing price of the underlying share on the previous trading day is 400 Agorot. Therefore, the "extreme" strike prices will be:
- Extreme upside strike prices — 600,680
- Extreme downside strike prices — 200,120
