SPX Weekly Options Close Early/Expiration

Discussion in 'Options' started by FSU, Dec 7, 2011.

  1. FSU

    FSU

    SPX Weekly options now stop trading at 3:00 ct on the day they expire. Previously they traded up until 3:15.

    The SPX continues to tick after 3:00 so this presents some risk that traders may not be able to cover.

    Also if you have some type of time spread on, you will be able to trade the non expiring leg until 3:15, which may present some margin issues, as you cannot trade the expiring option after 3:00
     
  2. bc1

    bc1

    Thanks for the heads up. I've been trading the spx weeklies. Usually a trade or two at the first of the week once I guess at a direction. Then a trade or two mid week as direction gets more definitive. Then a few trades on Friday for a little profit/loss taking.

    However with Europe ready to lay a bomb or xmas present on us Friday, I am foregoing the midweek trades. With the market chop so far, my Monday bear call trade of 1290-1295 for $1.70 credit is still good.

    I can't figure out the present market chop. Go to bed with the futures down then wake up to find the futures up and market gapped up. Then it goes away by the end of the day.
     
  3. Understanding it will only confuse you :)
     
  4. bc1

    bc1


    :) Yep. Kinda like reading bwol.
     
  5. bc1

    bc1

    Thanks for info emrglobal. I'm watching spx. As I learn more, I expect to learn a better strategy than this hit or miss directional one. I ended up placing a 1235-1240 bull put spread on Wednesday and then the market tanked to 1234 the next day. Luckily it came back up today or it would have been a loser. Those along with a couple trades today gave me a 20.70% ROI this week. Good thing it didn't hit my 1260-65 bear call spread. So far I'm at 50.15% ROI for the two months I've been trading on my little $3241 account.

    Correct me if I'm wrong, but when exercised on SPX like I was last week, they just ding me for cash based on the Friday close price. If I get exercised on stock or an ETF, don't I have to deal with any gap up or gap down on the Monday morning open price when the broker/optionsexpress does it thing?