Question for ETF experts... help.

Discussion in 'ETFs' started by Don Bright, Dec 6, 2011.

  1. But if I'm long those 122 calls you wrote it's up to me whether I exercise them or not. Even if SPY closes at 121.90, if news comes out before the time I have to exercise and the market goes up to 123, I will want to exercise those calls and you have to give me the shares at 122 despite the closing price.

    I just don't see why you're concerned about the prospectus and the underlying value at all. All that matters is the price it's trading at and the only reason the close price would matter is for auto-exercise.
     
    #21     Dec 16, 2011
  2. rmorse

    rmorse Sponsor

    I agree.
     
    #22     Dec 16, 2011
  3. rmorse

    rmorse Sponsor

    #23     Dec 16, 2011
  4. Finally from GS, just FYI - still a bit "weird and vague" LOL - but an answer.
     
    #24     Dec 16, 2011
  5. rmorse

    rmorse Sponsor

    Don,

    That's the same document monstimal provided you.

    Bob
     
    #25     Dec 16, 2011
  6. Hmm, I show a Jan 2010 vs. his July 2008... pretty close I guess. Heck, I've looked at so much "stuff" - I may be going a bit whacky, LOL... thanks everyone.

    Don
     
    #26     Dec 16, 2011
  7. rmorse

    rmorse Sponsor

    I believe it's the same information. That document comes out on a regular basis. Have a good week end Don..........Bob
     
    #27     Dec 16, 2011
  8. Did all equities switch over to Consolidated Tape for last price? (or just ETFs)
     
    #28     Dec 16, 2011
  9. rmorse

    rmorse Sponsor

    All equities, Since 2003.
     
    #29     Dec 16, 2011
  10. FYI:

    CME uses three different calculations to determine ES settlement price.

    CME uses SOQ for settling the 4 ES quarterlies: (Consolidated calc @ 8:30am)
    http://www.cmegroup.com/education/featured-reports/understanding-the-soq.html

    CME uses ESF for settling weeklies and End of Month (VWAP 2:59:30pm - 3:00pm)
    http://www.cmegroup.com/trading/equity-index/SandP-EOM-options-fixing-price.html

    Finally they use their Daily Settlement procedures for Non Quarter serial months and early exercise and assignment. (VWAP 3:14:30 - 3:15pm)
    http://www.cmegroup.com/market-data/settlements/settlements-details.html

    The ES ESF settlement price calculations track SPY the closest.
    Quarterly ES SOQ leave a 6 1/2 hour gap before Spy closes and leads to many big settlement surprises if your hedging SPY/ES.
     
    #30     Dec 16, 2011