Dear option traders, Yesterday (6 sept 07) I did bull credit spread with SPX weekly sept week 1 on thursday BUY PUT Sept week one SEP1 1450 SELL PUT Sept week one SEP1 1465 credit $117 The closing index that day was 1478.55 This morning SPX opened at 1475.02 Which mean SPX didnt ever touch 1465, but I really dont understand why in CBOE weekly settlement shows 1458.98 as its weekly settlement price? Because of this, my trade got exercised with loss $602 Could anyone explain about this? thanks in advance.
You need to learn what settlement is before trading SPX index options. Settlement has noting to do with where index options. SET is derived from the opening of all 500 stocks in the index and they all do not open at 9:30 AM. Go to CBOE website and look up SPX SET values and description.
?........1465 minus 1458.98 equals 6.02 points times 100 dollars per point equals $602 gross loss plus $117 credit equals $485 net loss?
SPX and a few other index products settle at the "SOQ" (special opening quotation. ) This is all 500 prices of the S&P 500 stocks, not just the first print of the index.
Thanks for immediate reply, I will check it now. Maybe there's another reply for my exercised trade...
Thanks for immediate reply, I will check it now. Maybe there's another reply for my exercised trade...
Here is the picture to clearify the trading. On thursday 6 sept07, SPX index close @ 1478.55 On the next day, the settlement for SPX from CBOE was announced @1458.96 WHAT THE ???? And my trading is got exercised, but i dont know why... The opening quote for SPX on the next day was @1478.55