No such thing as a stupid question? Well, I have one.

J

jnbadger

Why is there such a discrepancy between the traditional SPX options and the weekly options which both expire tomorrow?

It seems like there is a trade there which is too good to be true.

What am I missing?
 
To quote the CBOE

This depends on whether the option is American- or European-style:

For American-style index option contracts the last trading day is generally the third Friday of the expiration month, unless that day is an exchange holiday in which case the last trading day will be the previous day, or Thursday.

For European-style index option contracts the last trading day will be the business day (generally a Thursday) preceding the day on which the exercise settlement value is calculated (generally the third Friday of the month unless that day is a holiday).
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SPX Options are European, so they cease trading today. However, the underlying continues to move and can alter the values overnight. The settlement value won't be calculated until tomorrow though.

This would be my guess.

stepandfetchit said:
You are aware the "traditional" monthlies cease trading today, correct?
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The CBOE doesn't seem to differentiate SPX weekly and monthly expiration. They both cease trading today as far as I can tell.
 
According to TOS, they expire tomorrow. Please forgive me, I haven't traded options for a very long time. But TOS gives the same expiration date for both.
 
jnbadger said:
According to TOS, they expire tomorrow. Please forgive me, I haven't traded options for a very long time. But TOS gives the same expiration date for both.
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Correct. While they both expire tomorrow, the Monthlies are AM expiration, while the Weeklies are PM expiration. You will not be able to trade the expiring monthlies after the close today! In TOS, also note the value in parenthesis (0) VS (1), which reflects the Days remaining! Also note the notation "AM" to clarify.
upload_2019-10-17_9-54-24.png
 
stepandfetchit said:
Correct. While they both expire tomorrow, the Monthlies are AM expiration, while the Weeklies are PM expiration. You will not be able to trade the expiring monthlies after the close today! In TOS, also note the value in parenthesis (0) VS (1), which reflects the Days remaining! Also note the notation "AM" to clarify.
View attachment 211503
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Well, I told everyone it was a stupid question. I just refreshed my TOS platform, and now it gives me a 1 and a 0 AM instead of a 2 and a 1 for expiration days. SPY is different. It gives me a 1.
 
There are both SPX monthly options (SPX) that expire on tomorrow mornings opening SPX print and SPX weekly options (SPXW) which are listed for every Monday, Wednesday and Friday that expire on tomorrow afternoons close.
 
FSU said:
There are both SPX monthly options (SPX) that expire on tomorrow mornings opening SPX print and SPX weekly options (SPXW) which are listed for every Monday, Wednesday and Friday that expire on tomorrow afternoons close.
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If your intention is to be comprehensive for SPX options, don't forget the EOM's (Last trading day of each month) as well as the shifted expiry's due to holidays.
 
stepandfetchit said:
If your intention is to be comprehensive for SPX options, don't forget the EOM's (Last trading day of each month) as well as the shifted expiry's due to holidays.
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Good point. Anything else other than the regular monthly expirations are considered SPXW and expire in the afternoon, including EOM's.
 
This thread makes me feel incredibly uneducated. All I do is trade stocks. I haven't traded options in years. Thank God I asked. Thank you everyone.
 
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