Index Options Settlement Time

OEX options are American style and trade on the Friday while SPX options stop trading the Thursday before expiration. OEX uses the last closing reported price of each stock in the index on Friday.
 
SET is more volatile on witching days and it is not rare to have SET be higher than even the high for the index for the morning. So even if the index opens up and runs 8 points, SET could be 15. And if SET is that high you have no defense because the options stopped trading. When you are 10 points or closer on a witching day with significant news to be announced on Friday morning, then you get out on Thursday automatically.

Quote from Arnie Guitar:

Thanks coach. I don't feel so bad now....

but dog-gone it, when you're looking at 10% ROI for one month, and settle for 2.5%...

Yes I know, 30% annualized still ain't bad, but 120% is alot better.
I kept telling myself, "don't be greedy, cover it Arnie, cover it."

..and now coach tells me I did the right thing.
I feel much better.

Thanks again coach, you da man. :cool:
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