I heard alot on CNBC about the market makers wanting to get the S&P to close as close too they 1400 mark for expiration last friday (3/16). because of all the puts they sold since 2/27 etc. I understand strike pegging etc. but my question is... Which contract did they sell options on? SPY? SPX, ES? Also, the options on the SPX or ES, are those based on the CME Index or are they based on the futures contract? (If I own a 1400 put on the SPX and on friday the closing price was 1386 for the index and 1399 for ES, am I 1 point or 14 points in the money) Thank you.
Which contract did they sell options on? SPY? SPX, ES? - SPX Also, the options on the SPX or ES, are those based on the CME Index or are they based on the futures contract? - there is no CME index. ES futures options are based on the ES futures contract. (If I own a 1400 put on the SPX and on friday the closing price was 1386 for the index and 1399 for ES, am I 1 point or 14 points in the money) 14 pts in the money. SPX options are based on the SPX index. Your are confusing futures options((ES) traded @ CME)) with security options ((SPX) traded through CBOE, ISE, BOX etc)). They are very different products. Do some research.
Woops, I meant the SPX index from CBOE. So using interactive brokers it would be the options that show up for: Underlying: SPX Exchange: CBOE Description: SPX Index
Keep in mind, SPX is AM settled. Last time to trade is on Thursday. SET value is calculated by the opening prices of stocks in SPX, and is usually not disseminated until about 11-12 EST Friday morning.