Days to expiry

just21 · Aug 2, 2002

In an option pricing model do you include weekends in the days to expiry or is it trading days to expiry?

thanks for settling this argument i am having with a friend!

jpomerenke · Aug 2, 2002

and i thought i was bad a spelling

billb2112 · Aug 2, 2002

I fail to see the misspelling here. If you're referring to "expiry", then you are indeed a bad speller because this is a perfectly valid word.

http://www.dictionary.com/search?q=expiry

I would be very interested to know the answer to the question though.

Thanks.

jpomerenke · Aug 2, 2002

you are right ..i misread it..he used the right word for the way the sentence was worded..
chow
joey

Maverick74 · Aug 2, 2002

Originally posted by just21
In an option pricing model do you include weekends in the days to expiry or is it trading days to expiry?

thanks for settling this argument i am having with a friend!

Yes, you include weekends. This is why option sellers love weekends because they make the most money on Monday.

dotslashfuture · Aug 2, 2002

yes I never buy on friday with the intention of holding over the weekend.

patefern · Aug 2, 2002

Originally posted by dotslashfuture
yes I never buy on friday with the intention of holding over the weekend.

Originally posted by Maverick74

Yes, you include weekends. This is why option sellers love weekends because they make the most money on Monday.

It's already factored into the price.

shyhh · Aug 2, 2002

based on the experience you guys had in trading, do a lot of market moving events happen over the weekend ?

metooxx · Aug 2, 2002

Originally posted by Maverick74

Yes, you include weekends. This is why option sellers love weekends because they make the most money on Monday.

I agree.

metooxx · Aug 2, 2002

Originally posted by shyhh
based on the experience you guys had in trading, do a lot of market moving events happen over the weekend ?

Market moving events happen whenever they want, and whenever you don't want them to ...