Be aware that Thursday, February 17, is the last trading day for Friday A.M settled options. It is very important for the trader to understand the impact of A.M. settled options. The settlement prices are determined by Friday, February 18 morning's opening prints for the component stocks. The option classes which are settled with A.M. settlement are the SPX, DJX, MNX and NDX. The last trading day for the OEX, XEO, ETFs and all equity options is Friday, February 18.
From the Options Industry Council: " AM settlement - Exercise settlement values are based on the reported level of the index calculated with the opening prices of the index's component stocks on the day of exercise. If a particular component security does not open for trading on the day the exercise settlement value is determined, the last reported price of that security is used. Investors should be aware that the exercise settlement value of an index option that is derived from the opening prices of the component securities may not be reported for several hours following the opening of trading in those securities. A number of updated index levels may be reported at and after the opening before the exercise settlement value is reported. There could be a substantial divergence between those reported index levels and the reported exercise settlement value."
It is your responsibility to know the contract specifications of any product you trade. These specifications are available at the websites for the individual exchanges. The Options Industry Council provides an expiration calendar. I use it multiple times per day. Time is one of the most important variables in option trading. The calendar is available at OCC Expiration Calendar.
"Chance favors the prepared mind - Louis Pasteur
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