Being Assigned after expiration...HELP!

[MTE]

Quote from kalikahuna:

yeah...I think I'm screwed...however, i looked back at historical prices and SPX opened at 1280.26 on that Friday...from what I've read from everything, the SET is done on the morning of expiration day with the opening price...so, how was the SET 1288.95 if the opening price was 1280.26 (still OTM btw)?

Kalikahuna,

SPX options expire on a friday, however, thursday is the last trading day so usually when counting days to expiration thursday is used rather than friday, as it is the case with equity options which expire on a saturday, but friday is the last trading day.

I doubt you can hold them liable for that as it is your responsibility to know the product you trade.

The SET is calculated using the opening prints for each and every individual stock that constitute the S&P 500 index so the SET value has very little to do with the opening price for the index (i.e. different calculation method). The reason being that stocks post their individual opening prints at different times, some may print at 9:30 others as late as 9:45 or even later. That is why the SET value can be so different from the index Thursday closing value and the index Friday opening value.

Once again, you must understand the product you trade!

 

[TorontoTrader2]

Quote from kalikahuna:

CRAP! I looked up the SPX weeklys and they expire on Fridays also! But on optionsxpress's website, they list expiration date for both SPX and XSP on Thursdays...I went back on some successful credit spreads and, until this week, I had never ended ITM on these trades the next day either.


Can I hold them liable with misslabeled expiration dates on their websites? or do I just chalk it up as a 1200 dollar lesson?

This is why OX has such high commissions - they have to pay people to deal with newbies like this. You are paying all kinds of staff and managers to spend hours on the phone arguing with people like this much as occured on this forum.

 

[Eliot Hosewater]

Quote from MTE:

Kalikahuna,

SPX options expire on a friday, however, thursday is the last trading day so usually when counting days to expiration thursday is used rather than friday, as it is the case with equity options which expire on a saturday, but friday is the last trading day.

I doubt you can hold them liable for that as it is your responsibility to know the product you trade.

The SET is calculated using the opening prints for each and every individual stock that constitute the S&P 500 index so the SET value has very little to do with the opening price for the index (i.e. different calculation method). The reason being that stocks post their individual opening prints at different times, some may print at 9:30 others as late as 9:45 or even later. That is why the SET value can be so different from the index Thursday closing value and the index Friday opening value.

Once again, you must understand the product you trade!

Seems like you can leave yourself wide open for a "gap" on the SET. Can the OP have put in an order to close the position at Thursday's market close?

 

[MTE]

Quote from Eliot Hosewater:

Seems like you can leave yourself wide open for a "gap" on the SET. Can the OP have put in an order to close the position at Thursday's market close?

Yes, there's significant gap risk and, yes, you can easily close out the position at thursday's close.