I understand this video was created in the year 2016. And CBOE matters with respect to the SPX type options have changed. My question is how does everything stated in this video apply to the daily expirations contracts (Mon Wed Fri). And, today, Aug 31, 2021, there was actually a Tues expiration option available to trade. So my question is does today's (Tue., Aug 31, 2021) set price get determined based on close prices at 4:00 PM or at 4:15 PM or 8:00 PM or Wed Morning , Sept. 1, 2021 at XX:XX AM ? Also or the Weekly/Daily SPX Option, is ITM or OTM get determined at the 4:00 PM (E.S.T.) close or 8:00 PM Close (After hours trading) ?
+David W. Johnson Correct. SPX is notionally similar to equities so a 50 delta will result in a 50 cent gain or loss with a move in SPX. I will consider doing a futures options whiteboard - thanks for the idea and thanks for tuning in!
Can i ask you a question. I could not find anywhere answer for. How does assignment work on SPX since they are cash-settled. So if i sell a $3450 PUT/ Buy $3400 CALL and price goes to $3410 then my loss at expiration is $4000 ? As SPX has no shares traded so they will just deduct the money from my account ? Thanks
It does sound like there are too many ways to get f***ked with SPX options, I don't trust them nor the people or machines adding up the SET numbers, they're not for me.
+warever37 Glad you liked it! SET is actually separate from the SPX opening price on Friday. The SET price can be found by entering SET into any platform's ticker symbol search bar Friday morning.
Brilliant - Thanks for sharing. I just learned about this yesterday, by randomly reading critical comments on a different strategy video. I hope this gets incorporated into dough.com (pop up warning/*note) - even 30-year professionals have "perished from lack of knowlegde" about this.
SPX is cash settled, so you would just be left with the P/L based on the closing price of SPX for a weekly PM settlement. AM settlement, you'd be left with P/L based on the ticker SET on Friday morning. For an equity, you'd be long or short shares!
When trading the SPX options with a .50 delta, the option will move approx. .50 cents for every POINT the indice moves? Does this still apply with index options ? Also you should do a segment on /ES futures option pricing & how and why they are quoted differently on the options chain...thx guys
+Leggo My Ego dough does not charge any extra fees - all fees are charged through TD. With that said, there would still be an assignment fee as any option that is ITM and held through expiration is subject to this, regardless of whether it is cash settled or share settled.
very Good !! Thank you. With Spx are options open for trade in after hours ? Do you have to be concerned with pricing during non- standard market times ?
Greg - they are not. Option markets close at specified times and that is it - their stock may trade after hours, but SPX has no stock. You can check out trading times on the CBOE website if needed. In terms of concern, that is one of the risks of SPX - since the S&P 500 futures continue to trade, if SPX is closed you would have to wait until the next trading day opening bell to adjust positions, but those prices will snap into place on the opening bell so there is no room to mitigate losses if the S&P drops 5% overnight, unless you're actually trading /ES instead of SPX.
@@tastyliveshow What about SPXW options on the date of expiration? They stop trading at close, but when is the settlement value? Is that after all after hours trading has ended? cboe website isn't clear to me
It's going to be hard to do - usually if you don't have a brokerage account you get delayed data - If you have a brokerage account you can get live data through the platform.
Thanks for all those educational videos! There's a video about the differences between SPX options vs SPY options? Are all the index options European style?
Michele, Generally speaking, indices that are cash settled are european style, because there is no stock that can actually be traded / assigned. SPX & VIX are the most popular examples of this. SPY, however, has shares that can be assigned so that is american style.
+Rafael Passos Any exchange website, such as the CBOE site is great for checking trading hours and expiration times. The SET price can be found by entering SET into any platform's ticker symbol search bar Friday morning.
+Kiiren100 The premium paid would have already been taken out of your account upon trade entry. If the option expires ITM, the P/L would be assessed based on the SET price, and your account would be adjusted accordingly.
@@tastyliveshow so I can buy SPX call and sell it to close before expiration date too? i still dont get what exercising means after watching all the videos
trading is too immense, years in & it looks like I still learn something new everyday
I understand this video was created in the year 2016. And CBOE matters with respect to the SPX type options have changed. My question is how does everything stated in this video apply to the daily expirations contracts (Mon Wed Fri). And, today, Aug 31, 2021, there was actually a Tues expiration option available to trade. So my question is does today's (Tue., Aug 31, 2021) set price get determined based on close prices at 4:00 PM or at 4:15 PM or 8:00 PM or Wed Morning , Sept. 1, 2021 at XX:XX AM ?
Also or the Weekly/Daily SPX Option, is ITM or OTM get determined at the 4:00 PM (E.S.T.) close or 8:00 PM Close (After hours trading) ?
+David W. Johnson Correct. SPX is notionally similar to equities so a 50 delta will result in a 50 cent gain or loss with a move in SPX. I will consider doing a futures options whiteboard - thanks for the idea and thanks for tuning in!
I believe spx options can also be traded from 4pm until 4:30pm as well, 30 minutes longer than any other options.
Can i ask you a question. I could not find anywhere answer for. How does assignment work on SPX since they are cash-settled. So if i sell a $3450 PUT/ Buy $3400 CALL and price goes to $3410 then my loss at expiration is $4000 ? As SPX has no shares traded so they will just deduct the money from my account ? Thanks
A.M. settled gives room for shenanigans between Thursday close and Friday A.M. settlement
It does sound like there are too many ways to get f***ked with SPX options, I don't
trust them nor the people or machines adding up the SET numbers, they're not for me.
How many years did you count to see what is the biggest difference and can you provide sources you got info from ??
Thank you, that was helpful. I have a question though: is the SET price the same as Friday Open price?
+warever37 Glad you liked it! SET is actually separate from the SPX opening price on Friday. The SET price can be found by entering SET into any platform's ticker symbol search bar Friday morning.
Is the video only apply to SPX option that expire monthly and not for weekly right?
Brilliant - Thanks for sharing. I just learned about this yesterday, by randomly reading critical comments on a different strategy video. I hope this gets incorporated into dough.com (pop up warning/*note) - even 30-year professionals have "perished from lack of knowlegde" about this.
+William Redfire That would be nice! I will pass this along as a feature request. Thanks for tuning in!
Very good Mike sir
It has expiration 3 days a week now Monday Wednesday and Friday right?
Aren't weeklies set to expire 3x a week? Mon Wen Fri?
hi there great video
what happens if you have spread and only one strike finishes in the money?
for weekly spx options
SPX is cash settled, so you would just be left with the P/L based on the closing price of SPX for a weekly PM settlement.
AM settlement, you'd be left with P/L based on the ticker SET on Friday morning.
For an equity, you'd be long or short shares!
thank you for the video ^^ is xsp weekly options settlement the same day which is friday?
When trading the SPX options with a .50 delta, the option will move approx. .50 cents for every POINT the indice moves? Does this still apply with index options ? Also you should do a segment on /ES futures option pricing & how and why they are quoted differently on the options chain...thx guys
With SPX, if the option is in the money, is there an assignment fee on TD/dough even though it is cash settled and no stock is assigned?
+Leggo My Ego dough does not charge any extra fees - all fees are charged through TD. With that said, there would still be an assignment fee as any option that is ITM and held through expiration is subject to this, regardless of whether it is cash settled or share settled.
This is ancient data, needs an update to handle every day expirations on SPX weeklies.
very Good !! Thank you. With Spx are options open for trade in after hours ? Do you have to be concerned with pricing during non- standard market times ?
Greg - they are not. Option markets close at specified times and that is it - their stock may trade after hours, but SPX has no stock. You can check out trading times on the CBOE website if needed. In terms of concern, that is one of the risks of SPX - since the S&P 500 futures continue to trade, if SPX is closed you would have to wait until the next trading day opening bell to adjust positions, but those prices will snap into place on the opening bell so there is no room to mitigate losses if the S&P drops 5% overnight, unless you're actually trading /ES instead of SPX.
Global Trading Hours 2:00 a.m. to 8:15 a.m.
@@tastyliveshow What about SPXW options on the date of expiration? They stop trading at close, but when is the settlement value? Is that after all after hours trading has ended? cboe website isn't clear to me
great video ,been looking around for these concepts with clarity thanks for making this.
where can we find option table for S&P ,with live data ?
It's going to be hard to do - usually if you don't have a brokerage account you get delayed data - If you have a brokerage account you can get live data through the platform.
Great job Mike :)
Thanks for the video.
Hi sir can Indian can trade on Spx option
Thanks for all those educational videos! There's a video about the differences between SPX options vs SPY options? Are all the index options European style?
Michele,
Generally speaking, indices that are cash settled are european style, because there is no stock that can actually be traded / assigned. SPX & VIX are the most popular examples of this.
SPY, however, has shares that can be assigned so that is american style.
what website is a good source to check the exp time/day and also what the set price or closing price was after expiration?
+Rafael Passos Any exchange website, such as the CBOE site is great for checking trading hours and expiration times. The SET price can be found by entering SET into any platform's ticker symbol search bar Friday morning.
I have a question, what happens to the premium paid for the option when a european style option expires in the money?
+Kiiren100 The premium paid would have already been taken out of your account upon trade entry. If the option expires ITM, the P/L would be assessed based on the SET price, and your account would be adjusted accordingly.
Ty
How can we close the trade prior to expiration, SPX are European options, no?
Closing is not synonymous with exercising - if you sell an SPX put, you can buy back that same put to close the trade. -1 put + 1 put = 0 position.
@@tastyliveshow so I can buy SPX call and sell it to close before expiration date too? i still dont get what exercising means after watching all the videos
@@clifflee4506 exercising means closing out the option you bought for shares
Why are you muting the name it sounds horrible
Can i exit my spx bear call spread before expiration?
Yes you can! You just can't be assigned early. You can still route the opposite order, which would close the position.