So, I'm darn close to being ITM on a short OTM naked put equity position, and I want to be darn sure when the "finish line" is. The close of trading, this Friday right? Or am I still in play because of after hours trading? Or.......? This is what my broker has on their site: "Options Expiration The last day to trade equity option contracts expiring on Saturday, 6/17/06 is Friday, 06/16/06. If you do not have sufficient funds/buying power to cover potential exercises or assignments, please deposit funds or close out your position before close of market on 6/16/06. Any equity option that is in-the-money by $0.25 or more upon expiration will be exercised." So, they expire on Saturday? Huh? I thought they expire on Friday....... Bottom line, if I am OTM at the close on Friday, am I in the clear?
The actual expiration is on Saturday, but the last trading day is Friday. You're not in the clear until Monday, that's when you will find out whether you were assigned or not. The closing price and the $0.25 are only used to determine the automatic exercise threshold, they don't really determine if someone wishes to exercise an option or not. A holder may decide to exercise an OTM cause in afterhours the stock makes a move on some announcement, for example. However, generally, if an option expires OTM then you should be OK, if it is ATM or close to ATM then you can either take on the weekend risk (i.e. the risk that you get assigned and the stock gaps against you on Monday) or close out the option on Friday.
Good thread I would be interested to find out finish line for Z(FTSE100), YM, ER2, and ES . Thanks for info
What's your position? What did you sell it for? Maybe it's better to buy it back, especially on a strong up day as today.
First of all, I stated the wrong option position. I am short calls, not puts....duh. I could not be at the computer this afternoon, and I am ITM by a buck. I was going to buy it back this morning, but..................... I had the trade ticket filled in, but didn't press "Submit". I'll have to buy it back in the morning, and maybe roll it into another position, maybe not. I have several other positions this month that did pretty good, I guess I'll have to give the market back some of the money. Maybe we'll get a little profit taking tomorrow, we'll see how the futures, Europe, and pre-market look in the morning. I was short the June 390 GOOG calls, and long the 400's. Sold the 390's for $2.15, and bought the 400's for $.70 on Tuesday. I gotta stop messin' with that darn GOOG..... And I was gonna do the 400/410 instead, but NNNOOOOOO. Darn it.
All contract information and product specifications are readily available online at respective exchange websites. Call me crazy, but I would have to say that it's probably a good idea to know what you're trading before you get into a position no? Probably just me
It's one thing to read about OE on paper. Another to actually experience it for the 1st time, especially if you are going ITM/OTM on OE day. BTW, what are the chances of getting any options orders executed after stock market closes? Didn't the options market used to stay open for 1 hour after stocks?
I was being partly facetious and partly serious You have inadvertently reinforced the point though. Your question can be answered by going to the relevant website and seeing the trading hours under the product specifications. Index products have different specs. Check them out. Good luck!