No such thing as a stupid question? Well, I have one.

Discussion in 'Options' started by jnbadger, Oct 17, 2019.

  1. jnbadger

    jnbadger

    Why is there such a discrepancy between the traditional SPX options and the weekly options which both expire tomorrow?

    It seems like there is a trade there which is too good to be true.

    What am I missing?
     
  2. about 6.5 hrs (but more like 24 hrs) difference.
    You are aware the "traditional" monthlies cease trading today, correct?
     
    tommcginnis likes this.
  3. gaussian

    gaussian

    To quote the CBOE

    SPX Options are European, so they cease trading today. However, the underlying continues to move and can alter the values overnight. The settlement value won't be calculated until tomorrow though.

    This would be my guess.

    The CBOE doesn't seem to differentiate SPX weekly and monthly expiration. They both cease trading today as far as I can tell.
     
    tommcginnis likes this.
  4. jnbadger

    jnbadger

    According to TOS, they expire tomorrow. Please forgive me, I haven't traded options for a very long time. But TOS gives the same expiration date for both.
     
  5. Correct. While they both expire tomorrow, the Monthlies are AM expiration, while the Weeklies are PM expiration. You will not be able to trade the expiring monthlies after the close today! In TOS, also note the value in parenthesis (0) VS (1), which reflects the Days remaining! Also note the notation "AM" to clarify.
    upload_2019-10-17_9-54-24.png
     
    tommcginnis, monee and gaussian like this.
  6. jnbadger

    jnbadger

    Well, I told everyone it was a stupid question. I just refreshed my TOS platform, and now it gives me a 1 and a 0 AM instead of a 2 and a 1 for expiration days. SPY is different. It gives me a 1.
     
    tommcginnis likes this.
  7. FSU

    FSU

    There are both SPX monthly options (SPX) that expire on tomorrow mornings opening SPX print and SPX weekly options (SPXW) which are listed for every Monday, Wednesday and Friday that expire on tomorrow afternoons close.
     
    tommcginnis likes this.
  8. If your intention is to be comprehensive for SPX options, don't forget the EOM's (Last trading day of each month) as well as the shifted expiry's due to holidays.
     
    tommcginnis likes this.
  9. FSU

    FSU

    Good point. Anything else other than the regular monthly expirations are considered SPXW and expire in the afternoon, including EOM's.
     
    tommcginnis likes this.
  10. jnbadger

    jnbadger

    This thread makes me feel incredibly uneducated. All I do is trade stocks. I haven't traded options in years. Thank God I asked. Thank you everyone.
     
    #10     Oct 17, 2019