SPX, RUT, NDX, etc use a 12/14 date for Dec Option expiration. Is the Thursday (12/13) closing price, or is the Friday (12/14) opening or Friday (12/14) closing price used? Thanks for the help.
The most important thing here is that the opening value for the index has nothing to do with the final settlement value, cause the settlement value is calculated based on the opening print for each individual stock in the index.
Just so I understand that - if for example, every stock in the index first printed at exactly the same time, then the settlement value would indeed be the first print of the index?
This subject is extremely important to me. Last month I almost got into a TON of trouble with an S&P option position...two members here know what I'm talking about...and this month I covered a position in fear of possibly getting into that trouble again, but I don't think I had to...I wish I had a full understanding of "Where the Finish Line Is". This month I was in a credit spread, short the S&P Dec 1435 Calls, Long the Dec 1440 Calls, with a great profit, but covered them with a small profit in the final half hour of trading yesterday...and now I don't think I had to, and could have booked the bigger profit... Very, very frustrating. Yes, knowledge is power. I need to know more.
you did the right thing. With the huge uptikc in futures, the SET could easily be 10 -13 points higher than yesterday's close which would put your position in serious trouble. Think about it. A set of +12 would put the SET at 1437. Would $2.00 be a huge loss for you?
GO TO THE RESPECTIVE EXCHANGE WEBSITE THEY HAVE ALL THE SPECIFICATIONS WHY TRUST A FORUM FOR SIMPLE INFORMATION LIKE THIS ???
Because some of us are very familiar with SET and its history and the CBOE website has only a brief description without much detail and most people new to it still have a lot of questions. After all, what is a forum for.
Thanks coach. I don't feel so bad now.... but dog-gone it, when you're looking at 10% ROI for one month, and settle for 2.5%... Yes I know, 30% annualized still ain't bad, but 120% is alot better. I kept telling myself, "don't be greedy, cover it Arnie, cover it." ..and now coach tells me I did the right thing. I feel much better. Thanks again coach, you da man.