What happens when the ES Index futures options are exercised ?

Hi guys, what happens when the ES Index futures options are exercised ?

1.Long options
2. Short options

 

1. Long ES
2. Short ES

 

Thank you Robert.

Is the Long ES optional or not ? Because by definition a call is right to buy something ? So if I do not choose to exercise what happens on the last day of this ? (I realize I said exercise, but suppose I do not exercise and it is ITM, will it still be long ES ? )

Also what happens for this if the call is OTM ?

 

I would divide both points.

1. Long options (if you are the one exercising)
a) Long call -> Long ES
b) Long put -> Short ES

2. Short options (if others are exercising against you)
a) Short call -> Short ES
b) Short put -> Long ES

 

Thank you guys,

Also what happens once the options are exercised and we are long or short ES ? How is this ES long or short settled ?

 

It's an absolutely normal ES contract, cash settled

 

NO. I think sometime this year or last, the CME got rid of exercise exceptions. You should call them and confirm.

 

if your trading futures you would be well server to study the series 3 exam it would help you immensely.

 

Hi guys

Once the option is exercised automatically and the futures long position is established, is the futures contract also automatically settled? Or will it roll into the next quarter ?

 

You get a futures contract with whatever settle comes with that contract. ES futures are cash settled, so there is no roll from the CME.