hkfe index option

[flyingforget]

it seems hsi option is european option

could I cover the position before the expiration days?

 

[MTE]

European means that it can only be exercised at expiry. You can trade in and out of it any time you like.

 

[flyingforget]

Quote from MTE:

European means that it can only be exercised at expiry. You can trade in and out of it any time you like.

could retail trader hold the option untile it is exercised at expiry?

 

[flyingforget]

another question

why is the price of hsi option the same as the mhi option

 

[mokwit]

Quote from MTE:

European means that it can only be exercised at expiry. You can trade in and out of it any time you like.

Don't be too sure of this. If HSI option goes deep ITM there can be NO bids/offers. None. You can't take your profit.

 

[MTE]

Quote from mokwit:

Don't be too sure of this. If HSI option goes deep ITM there can be NO bids/offers. None. You can't take your profit.

Well, yeah, if you wanna nitpick. I was making a general statement. You can always hedge with the futures if you can't close out the option.

 

[MTE]

Quote from flyingforget:

could retail trader hold the option untile it is exercised at expiry?

I haven't looked at the contract specs, but presumably the options either settle into cash (quarterly contracts) or settle into the futures contract (serial contracts). So the answer, yes, you shouldn't have any problems holding to expiry.

Quote from flyingforget:

another question

why is the price of hsi option the same as the mhi option

Don't know what mhi is.

 

[Steve_IB]

Quote from mokwit:

Don't be too sure of this. If HSI option goes deep ITM there can be NO bids/offers. None. You can't take your profit.

You can do an RFQ (quote request).

 

[flyingforget]

Quote from MTE:

I haven't looked at the contract specs, but presumably the options either settle into cash (quarterly contracts) or settle into the futures contract (serial contracts). So the answer, yes, you shouldn't have any problems holding to expiry.



Don't know what mhi is.

it is mini hsi

 

[flyingforget]

Quote from MTE:

Well, yeah, if you wanna nitpick. I was making a general statement. You can always hedge with the futures if you can't close out the option.

then does that mean you have to wait until the expiration day

if the option is European option