What happens when the underlying stock to my option is now traded on an OTC market?

Please Note: This article provides an important update regarding options positions where the underlying stock is now traded on an Over-the-Counter (OTC) market.

Totality’s liquidity providers no longer support the opening of new positions in OTC-listed stocks. As a result, it will not be possible to settle the underlying stock upon option exercise.

To avoid complications, clients are required to close any existing options positions tied to these OTC stocks.

Why do I need to close my options position?

The underlying stock for your option is now trading on an Over-The-Counter (OTC) market. As a result of this change, our liquidity providers no longer support the opening of new positions in OTC-listed stocks.

Because of this restriction, it is not possible to settle the underlying stock if the option is exercised. To avoid any settlement issues, you are required to close your existing options position.

OTC stocks typically do not meet the listing standards of national exchanges. They often have lower liquidity, wider spreads, reduced trading volumes, and limited publicly available information. For these reasons, options on OTC stocks are generally not supported by Totality.

Deadline to Close Your Options Position

Totality Wealth will notify you directly with the deadline to close your affected options position (if applicable to your investments and portfolio holdings)  In most cases, you will have 5 business days to take action.

If you do not close the position within this timeframe, Totality will automatically close it on your behalf to prevent settlement issues.

Are there any exceptions to this requirement?

Yes. The OTC market includes a wide variety of companies, and in some cases, our liquidity providers may still support certain positions.

To confirm whether your option is affected, check the tradable status of the underlying stock on the platform.
If the stock is marked as “reduce-only”, the associated options position must be closed.

Why can’t I open new positions in OTC stocks?

Our liquidity providers restrict trading in OTC-listed stocks, which means new positions cannot be opened. This is why existing options positions tied to these stocks must be closed.

Will this impact my other options positions?

No. This change only applies to options where the underlying stock is now traded OTC.
All other options positions with different underlying assets remain unaffected.

What if I miss the deadline to close my position?

If you don’t act within the specified timeframe, Totality will automatically close the position on your behalf.
To maintain control over the timing and execution, we strongly recommend closing the position before the deadline.

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