When premium income is collected

Quote from triggertrader:

thanks for the link but it didnt help at all. i am looking at comex silver and nybot coffee options and i cant find the expiration dates for them at all.
More...
Go to www.nybot.com
Select "Market Info" -> "Calendar"
Select "Product Specific Calendar"
Select "Coffee, 2007"

The symbol 'KO' is coffee options, the symbol 'KC' is coffee futures.

I'm certain you can find nymex's calendar the exact same way I found NYBOTs and CMEs.
 
Quote from FullyArticulate:

Go to www.nybot.com
Select "Market Info" -> "Calendar"
Select "Product Specific Calendar"
Select "Coffee, 2007"

The symbol 'KO' is coffee options, the symbol 'KC' is coffee futures.

I'm certain you can find nymex's calendar the exact same way I found NYBOTs and CMEs.
More...

hi,
thanks. that helped. however if you look under april for example you will see 3 dates listed for coffee options. the first one says from 04/02/2007 KO Aug-07 First Trading Date

04/03/2007 KO Mar-09 First Trading Date

04/13/2007 KO May-07 Last Trading Date

this is totally confusing. when is the actual expiration of the option for april in this case? which one of these 3 will it be if any of them at all?
 
Quote from triggertrader:


04/03/2007 KO Mar-09 First Trading Date

04/13/2007 KO May-07 Last Trading Date

this is totally confusing. when is the actual expiration of the option for april in this case? which one of these 3 will it be if any of them at all?
More...

The first date you list is the First Trading Day for the Mar-09 option. The second date is the Last Trading Day for the May-07 option.
 
Quote from FullyArticulate:

The first date you list is the First Trading Day for the Mar-09 option. The second date is the Last Trading Day for the May-07 option.
More...

sorry i dont get it. if i am looking to sell an april coffee option and want to find out the expiration date of that options i see 3 expiration times for april 07 in that expiration chart. i see an april 07 last trading date expiring on april 2nd. then i see one expiring last trading date on april 3rd then there is a last trading date on april 13nth. next to the these dates are aug 07, march 09 and may 07. all i am trying to find out is when does the april 07 options for coffee expire? i see 10 diffrent dates here and they are talking about "first trading date and first notice dates"? when is the actual expiration of the april coffee options?
thanks.
 
Quote from FullyArticulate:

03/09/2007 KO Apr-07 Last Trading Date

The Apr-07 options have a Last Trading Date of 3/9/07.
More...

i know from trading futures that the first notice date means the last day you are allowed to be long and the last trading date means the last day you can be short (excluding equity markets that are settled in cash and have the same expiration date for long and shorts)
however in options this last trading date you gave me is the actual expiration date of the option? the first trading date doesnt apply in that chart?
thanks.
 
Quote from FullyArticulate:

03/09/2007 KO Apr-07 Last Trading Date

The Apr-07 options have a Last Trading Date of 3/9/07.
More...

do futures options always expire a month earlier than the contract delivery month?
 
Quote from triggertrader:

i know from trading futures that the first notice date means the last day you are allowed to be long and the last trading date means the last day you can be short

This is a very discount-broker view of the world. You are certainly "allowed" to be long or short past FND or even past LTD. Any commodity trader can tell you great war stories of the time they took delivery and made a killing.

IB (and others) limit their risk by forcing their customers out of the market on set days. They're largely assuming their customers weren't aware they would have to take delivery (and the broker has some obligations in a delivery situation as well).

however in options this last trading date you gave me is the actual expiration date of the option?

You've got to do at least a tiny bit of research yourself. The NYBOT coffee option page says:

Expiration
5:00 PM New York Time on last trading day. Automatic exercise at one tick or more in-the-money at expiration on last trading day.

the first trading date doesnt apply in that chart?

Since the first trading day of April '08 options is happening in December, I would say the first trading day of April '07 options was probably back in 2006.

do futures options always expire a month earlier than the contract delivery month?

Expiration dates are widely variable for all contracts. Some futures expire in the last few days of their delivery month, some expire more than a month in advance.

Keep in mind that there is no April Coffee futures contract. The option you're asking about is a SERIAL option on the May contract.

If you were trading May options and futures, it looks like the May coffee options LTD is a week before the futures FND. This is a good thing--you'd hate to be assigned on a short option without an opportunity to offset the futures contract.
 
Quote from FullyArticulate:

Quote from triggertrader:

i know from trading futures that the first notice date means the last day you are allowed to be long and the last trading date means the last day you can be short

This is a very discount-broker view of the world. You are certainly "allowed" to be long or short past FND or even past LTD. Any commodity trader can tell you great war stories of the time they took delivery and made a killing.

take delivery and make a killing??
how would taking delivery of a commodity make a killing? if i bought 5000 bushels of corn they woud come to my house and dump 5000 busghels of corn on my friend lawn and sharge me spot price or sue me. how can i make money by taking delivery. i got to hear this one.

IB (and others) limit their risk by forcing their customers out of the market on set days. They're largely assuming their customers weren't aware they would have to take delivery (and the broker has some obligations in a delivery situation as well).

however in options this last trading date you gave me is the actual expiration date of the option?

You've got to do at least a tiny bit of research yourself. The NYBOT coffee option page says:

Expiration
5:00 PM New York Time on last trading day. Automatic exercise at one tick or more in-the-money at expiration on last trading day.

the first trading date doesnt apply in that chart?

Since the first trading day of April '08 options is happening in December, I would say the first trading day of April '07 options was probably back in 2006.

do futures options always expire a month earlier than the contract delivery month?

Expiration dates are widely variable for all contracts. Some futures expire in the last few days of their delivery month, some expire more than a month in advance.

Keep in mind that there is no April Coffee futures contract. The option you're asking about is a SERIAL option on the May contract.

so what you're saying is that serial options always follow the front most liquid month?

If you were trading May options and futures, it looks like the May coffee options LTD is a week before the futures FND. This is a good thing--you'd hate to be assigned on a short option without an opportunity to offset the futures contract.
More...

i have another question if you dont mind. i was looking at option premium prices and it may seem simple to you but i find it very difficult to calculate them. i would like to give you an example and perhaps you can give me an answer and demonstrate how you figured it out.
i am lookiing at futuresource.com option premium prices. i see a 120.00 coffee call for a premium price of 0.70. i know you have to multiply the point value by the premium but those decimals and zeros really confuse me and i dont think im getting the right total. please tell me how much that option would cost and how you calculated it. i am also looking at a 8700 jap yen call option with a premium price of 0.00130 & a silver 15.00 call option at a premium price of 0.045.
thanks again.
 
Quote from triggertrader:

i see a 120.00 coffee call for a premium price of 0.70. please tell me how much that option would cost and how you calculated it. i am also looking at a 8700 jap yen call option with a premium price of 0.00130 & a silver 15.00 call option at a premium price of 0.045.
More...
I show a last for the May 120 call (expiring in 18 days) on coffee as .85. That trade may have occurred early in the day, and I compute fair value as 1.00 given a reasonable IV. But, let's just assume it's $.85.

So, you buy that 120 call for $.85. You'd actually pay $375 x $.85 = $318.75.

Same with yen and silver--just multiply the price times the contract multiplier to compute your premium. (There are several different yen and silver contracts, so I don't know which ones you're looking at)

An 1445 ES call went for $18.50 last. So, $18.50 x 50 = $925 premium
 
You must log in or register to reply here.
Back
Top