Jump to content
  • 0

Question on US500 Options expirations


SilentSniper

Question

Hi,

I've a question on the options expirations for the US500 index. I understand that, apart from the daily options which are the priced off, and settle into, the IG daily spot cash index product, but that the weekly, monthly, quarterly, options behave like futures options and are priced off, and settle into the next underlying futures market (not the spot cash). This is similar to how I trade futures options on the ES at a different brokerage account (schwab). So, for example, the Jan and Feb option expirations for the US500 will be priced off, and settle into the underlying March futures ES contract (subject, of course, to the special opening quotation system), and the July and August expirations will settle into the September futures product. (They do not settle to the spot cash daily US500 IG product.)  So, for example, if I sell a  Jan 3890 Call option, it will be in the money only if the ES March futures (ESH23) is trading above 3890, regardless of what the IG spot daily cash US500 product is trading at. Can someone at IG please confirm if this understanding is correct? If it is correct then is it possible someone could also explain also why IG index SB monthly Options for the US500 for Jan 23 and Feb 23 list different prices for the underlying product at the top of the options chains - it lists the Jan 23 options underlying product at 3851.49 and the Feb 23 underlying as trading at 3859.49 (as at 22:00 hrs on 1st Jan 23). It lists the March options underlying correctly at 3867.49 - which is the correct for the March ES futures product (ESH23). I don't understand why Jan and Feb and not also quoted at 3867.49?

Sorry for the long question!

Thanks, David

Link to comment

0 answers to this question

Recommended Posts

There have been no answers to this question yet

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,230
    • Total Posts
      90,821
    • Total Members
      41,334
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Jimbo719
    Joined 02/02/23 21:34
  • Posts

    • US stock market is currently showing a bullish trend with several companies, such as Apple (AAPL), Tesla (TSLA), Amazon (AMZN), Nvidia (NVDA), Microsoft (MSFT) being very bullish. Stock Market: SP500, Apple (AAPL),Tesla (TSLA), Amazon (AMZN), Nvidia (NVDA), Microsoft MSFT, Berkshire Hathaway (BRK/B), Block, Inc (SQ), Meta Platforms, Netflix (NFLX), Enphase (ENPH), Alphabet GOOGL. XFL Finance Sector ETF, JPMorgan JPM & Bank of America BAC, Goldman Sachs Group Inc (GS) Stock Market Summary Earnings for large tech stock creates Elliott wave three's  Elliott Wave Analysis: Lows in for the stock market as the market Impulses higher Trading Strategies:Continue to hold Long Trades Video Chapters 00:00 SP500 / RUT 07:00 Apple (AAPL) 13:30 Amazon (AMZN) 16:15 NVIDIA (NVDA) 19:38 Meta Platforms (META) 20:23 Netflix (NFLX)  23:23 Enphase (ENPH) 28:28 Tesla (TSLA) 30:52 Alphabet (GOOGL)  33:02 Microsoft (MSFT) 36:49 Berkshire Hathaway (BRK.B) 38:40 Block Inc. (SQ)  42:59 Bank of America BAC 48:31 TRIAL Buy 1 Month Get 3 Months  Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com  
    • Look Ahead to 03/02/23: US jobs; Caixin; US ISM non-manufacturing PMI; SASY earnings After the Fed, ECB and the Bank of England all raised interest rates, traders turn their attention to the keenly watched US jobs report. We’ll get live coverage and reaction to the NFPs from IG’s Angeline Ong and Joshua Mahony. Plus, look out for ISM non-manufacturing PMI data for more hints on the health of the US economy, and earnings from French healthcare company Sanofi (SASY).   Angeline Ong | Presenter, Analyst and Content Editor, London | Publication date: Thursday 02 February 2023        
    • Special Coverage of the European Central Bank Interest Rate Decision.  
×
×
  • Create New...