A question came up today about why SPY options expiring on January 9th are priced differently, even though there’s no trading tomorrow. It all comes down to extended hours and how options are settled.
🔹 SPY trades until 8:30 a.m. tomorrow, so prices can still change overnight.
🔹 Settlement is based on today’s closing price, but extended hours can affect your decision to exercise.
🔹 You can file a “contrary exercise advice” form if needed, and adjustments can be made until the OCC’s cutoff tomorrow evening.
Options reflect both price and value. Knowing these nuances is key to smart trading. Stay sharp!
#OptionsTrading #SPY #InvestingTips #TradeSmart
Options involve risk and are not suitable for all investors. Before trading options, please read Characteristics and Risks of Standardized Option (ODD) which can be obtained from your broker; by emailing investorservices@theocc.com; or from The Options Clearing Corporation, 125 S. Franklin St., Suite 1200, Chicago, IL 60606. The content posted by our authors is intended to be general education and / or general information in nature. We are NOT providing advice for any individual trader. No statement made by our authors or subscribers is intended to be a recommendation or solicitation to buy or sell any security or to provide trading or investment advice. Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions. Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Share this post