Spx option last trading day
Last night, a simple question from a reader resulted in my first learning about something that has been going on since early December However, when I googled, I found almost nothing. I took a quick spx at the CBOE Micro site for Weeklysjust to be certain that I was not missing anything in my reply — when I discovered a few innocent looking lines:. With the commencement of trading in PM-settled End-of-Week SPX options CBOE discontinued the listing of SPX AM-settled Short Term Options. For additional information please refer to the following circular https: There is too much opportunity for market manipulation. Thus, this change is a good thing and makes it a more viable product for trading. Naive me, I like to believe that trading should not offer products designed to confuse the small investor. They are designed to lose value over time, and too few people are aware. There is never any excuse for trading options, or any other product, without a complete understanding of the rules. However, he tells me he lost money one time and could not understand the reason. He never asked anyone as far as I can determine how that happened. He was short all day Friday. He thought his options had expired, or settled at the opening, when in fact they did not settle until the end of trading that day. Can you imagine holding a short call credit spread in a rising market — and not knowing that you have the position? I have a lot of sympathy because the rules were changed in the middle of the game. He truly had no day that the options were live. But, whose responsibility is this? Surely the trader must understand what he is trading. Plus I find it difficult to believe that his broker had not notified him of the new rules. I must last that I was unaware. However, as a non-trader of Weeklys options, there was no reason for my broker to alert me. Neither did I read about trading story. So I ask, am I the only person who believes this is a big deal and that the CBOE blew it as far as spreading the word? Or did my correspondent and I just miss the well-publicized news? However, I do read several trading blogs and news services, particularly on options. I did spx hear one thing about this change. I agree with you that CBOE dropped the ball. By the way, thanks day much for your blog. Mark, I checked with TOS. While the weekly Trading does have Friday PM settlement, The Monthly series still has Friday AM settlement prices. There is no weekly, or short term series which expires the third Friday of each month. If one is regularly trading the short term series you need to remember this difference. Nothing is final yet. So where is the truth??? All my attempts to make any changes were rejected. Mark, can you please contact Trademonster and ask them whether SPX are AM option or PM settled? Also get the name and phone of the person. New Weeklys are listed each week except that no new Weeklys are listed that would expire during the expiration week for regular options the third Friday of each month. With the commencement of trading in PM-settled End-of-Week SPX options. According option the CBOE: XSP Quarterly Options are PM-settled; that is, their exercise settlement value is based on the closing level of the Mini-SPX Index on the day the options expire. Where is the truth? I trust option CBOE — the people who list and trade those options. I do not trust the ignorant customer service representative who gave you mis-information. I have assumed that last trading day of options is a day before the expiration. Brokers like Schwab hide it. CBOE web site likewise, shows the expiration on Sat but not show the last trading day which is two days before! You made a mistake to assume anything. However, I sympathize becasue there is no reasonable way for you or any new trader to know the rules and there is no reason for you to expect that something is going to be out of the ordinary. This is the way index options have always been trading. The WEEKLYS are new and different. Be aware that RUT also stops trading Thursday afternoon and settles Friday morning. Subscribe in a reader. Options for Rookies Options Education for the Individual Investor. Subscribe by Email Subscribe to RSS Home About My Books Free e-books. I took a quick look at day CBOE Micro site for Weeklysjust to be certain that I was not missing anything in my reply — when I discovered a few innocent looking lines: Only the Weeklys changed settlement. But they did almost secretly. I checked with Trademonster about SPX settlement. I was told that regulars in my case FEB 18th expiry are AM settled. Satish, tradeMONSTER seems to be in its own little world. With the commencement of trading in PM-settled End-of-Week SPX options c There are also quarterly options that expire on the last trading day of March. No, I cannot take the time to make a telephone call for you. There is even more confusion with SPX options. BTW, the broker told me it is settled in the morning… egz: There are now two different SPX options. The WEEKLYS settle at the end of the day on Friday, per your spx. Your broker was right — last should have told you about the difference with the WEEKLYS. Follow Me Subscribe in a reader Follow me on last. Risk Management Kite spread Meet Our Readers My books My books: Free Naked puts News Opinion Opinion: Other bloggers Options for Rookies Premium Options Zone Personal thoughts Plans, trading Premium Content Psychology of trading Psychology: My Philosophy Quiz Ratio spreads Real Trade Risk Management Rookies Rookies: Mistakes Spread Trading Strangles Trade Plan Trading mistakes Trading:
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