Bought options at expiry

sbergman · Nov 12, 2005

Could someone please explain what happens to an ITM European bought index option at expiry ?

How much would I have to pay for the following example:

Buy 1 x 5100 Call @ 40
Market ends at 5150 and option expires in the money.

How much is this option now worth ?

Buy 1 x 5100 Put @ 40
Market ends at 5050 and option expires in the money.

How much is this option now worth ?

thanks Steve

Profitaker · Nov 12, 2005

Index options are cash settled at expiry so....

Quote from sbergman:
Buy 1 x 5100 Call @ 40
Market ends at 5150 and option expires in the money.

Your account is credited with 50.

Quote from sbergman:
How much is this option now worth ?

Depends which months series you're talking about.

Quote from sbergman:
Buy 1 x 5100 Put @ 40
Market ends at 5050 and option expires in the money.

Your account is credited with 50.

Quote from sbergman:
How much is this option now worth ?

Depends which months series you're talking about.

Are you refering to the DAX per chance ?

sbergman · Nov 12, 2005

Quote from Profitaker:

Index options are cash settled at expiry so....

Your account is credited with 50.

Depends which months series you're talking about.
Your account is credited with 50.

Depends which months series you're talking about.

Are you refering to the DAX per chance ?

Yes, im talking about the Dax current series (Nov). I was thinking whether I am better off taking what the option is worth now (29.5) or hope for another move past 5100 which is the current trend with 7 days dte.

This would be credited 50 points per contract, x market multiplyer 5, x conversion to AU 1.6020 = $400.50 if underlying ends at 5150 and nothing if it ends at 5100 or below.

Also, if I would have sold the 5100 Nov Call then my account would of been debited this amount as well.

Steve

Profitaker · Nov 12, 2005

Quote from sbergman:

Yes, im talking about the Dax current series (Nov). I was thinking whether I am better off taking what the option is worth now (29.5) or hope for another move past 5100 which is the current trend with 7 days dte.

Sorry, can help you there. But if anyone knows the answer to that question (with certainty) can they please let me know, so that I can make a fortune.