Can anyone please tell me when the options expire for ES? Do they expire at the beginning of the day on Friday or End of day? I looked all over CME's website and can't find it. Thanks!
In March, June, Sep, and Dec, the options and futures both settle in cash at the open of trading on the Friday of settlement. The CME calls the final settlement price the SOQ "special opening quotation" and specifics about it are on the CME website. For the other months (February included) the ES options settle in ES futures at the end of the day on the Friday of expiration. Note that you can trade ES options up until 8:30am on expiration Friday in March, June, Sep, and Dec and up to 4:15pm the other months. Aaron Schindler Schindler Trading
One question regarding expiry - I've read (somewhere here on ET) that you have to close the option so that it does not roll into the following month, but I cannot find any literature to corroborate it. For example, say you are short Feb call (underlying is a March futures contract). If Feb expiry rolls around and you are OTM, will the contract revert to a March short call at the same strike or will it simply "expire" in much the same way as equity and index options? I don't currently trade options on futures but it's been bugging me for some time. Thanks
You expire worthless with no auto-rollover. Think it through. Who would your counter party be on a "new" short, lol.