SPX AM settlement risk

Discussion in 'Options' started by ZBZB, Feb 13, 2022.

  1. ZBZB

    ZBZB

    How does am settlement work on SPX? I was short some SPX puts on Friday that closed just OTM. I now have no position and my margin requirement has gone according to IB account window. Do I still have risk until the open on Monday?

    I usually trade ES which have PM settlement and position goes to zero at 9pm.
     
  2. newwurldmn

    newwurldmn

    I thought weeklies settle PM.
     
    ZBZB likes this.
  3. ZBZB

    ZBZB

  4. ZBZB

    ZBZB

  5. newwurldmn

    newwurldmn

  6. Bobby T

    Bobby T

    Majority of SPX expirations are PM settled based on final closing price on SPX. The AM options are the exception with those expirations being the 3rd Friday of the month; there is also a PM expiration same day. The AM options settle based on the official rate (ticker: SET), which is now published daily about ~30 minutes after market opens. All SPX options are cash settled.
     
    darwin666 likes this.
  7. newwurldmn

    newwurldmn

    except that i bet volume weighted the AM's are bigger than the PM's by an order of magnitude.