Futures Index Options Question

Discussion in 'Options' started by benysl, Sep 4, 2006.

  1. benysl


    If I sell a Emini S&P Options Call say at 1280.

    At the 3rd friday of expiration Sept 2006. If Emini S&P closes at 1300.

    Will I be short 1 lot of Emini S&P on the following monday and at what prices?

    Thank you
  2. MTE


    I don't trade those, so anyone with more accurate knowledge please feel free to correct me, but given that the underlying for Sep options is the Sep futures contract, which expires on the same day, the options will settle into cash not a futures position.
  3. benysl


    thank you how about a Oct position??

    Emini S&P futures December contract expire in December.

    Short a Call 1280

    On 20th Oct friday Dec S&P close at 1300.

    Will I be long 1 contract on the following monday? At what prices??

    If it is cash settle I presume it will be at 1300??

  4. Options contracts for the March Quarterly cycle (Mar, Jun, Sep, Dec) will be settled in cash. Serial options for other months are settled with the closest ES contract. In your case the short OCT 1280 Call will make you short the ES @ 1280 (ES currently @ 1300) at expiration.
  5. benysl



    thank you, does that mean on the following monday.
    I will be short 1 lot of emini S&P or will I be taking a 20 points losses and I will not be shorting any contract??

    thank you for reading
  6. ktm


    You will get the short futures contract on Saturday. You will be short the contract and 20 points down and your first chance to trade that contract will be 6pm Sunday.
  7. benysl


    hi ktm

    thank you very much it clear my doubt