What happened to options market during 9/11?

[a529612]

I wasn't into options back then. What happened to the options market when the exchange was closed for a few days and you wanted to get out?

 

[riskarb]

C'mon... you've answered your own question.

 

[Cache Landing]

Quote from riskarb:

C'mon... you've answered your own question.

LOL

Yep.. basically S.O.L.

 

[Pabst]

Quote from a529612:

I wasn't into options back then. What happened to the options market when the exchange was closed for a few days and you wanted to get out?

I was f*@#ed. I loaded up long on QQQ calls on the previous Friday and Monday (the 7th and 10th) with a tight mental stop. I could have sold futures right after the planes hit but how the f*@# was someone to anticipate that the WTC would collapse and that the market would remain closed all week! Of course everyone's hindsight is 20/20..........

 

[a529612]

Did that mean you were not really hedged even if you owned puts when the exchanges were closed indefinitely?

 

[Eliot Hosewater]

I wonder what would have happened if the markets were closed through expiration day? Extended expiration? SOL?

(Looking at the calendar, expiration would have been 9/22/01 and I think the markets had reopened by then.)

 

[Cache Landing]

Quote from Eliot Hosewater:

I wonder what would have happened if the markets were closed through expiration day? Extended expiration? SOL?

(Looking at the calendar, expiration would have been 9/22/01 and I think the markets had reopened by then.)

My bet is on SOL. The best they could do is mark to market all ITM contracts at the previous close or the first open.

 

[Cache Landing]

Quote from a529612:

Did that mean you were not really hedged even if you owned puts when the exchanges were closed indefinitely?

The answer to the question that you're getting at is that the only really safe money is cash during an event like that.

 

[a529612]

Quote from Cache Landing:

The answer to the question that you're getting at is that the only really safe money is cash during an event like that.

Gold is better than cash in this case.

 

[ajacobson]

Exercise them. The exchanges and OCC allowed exercise.