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Nolerman

11/14/15 11:54 AM

#275221 RE: Vish #275220

Yes and no, they need to be traded as such anyway. They are designated as AM settled options.....meaning they exercise/assign Friday morning, as opposed to what the majority of traders are used to, which is PM settled options (exercise/assign after trading ends on Friday). Here is a good explanation I found from the CBOE:



Settlement and last trading day: A key distinction between standard options and weekly options is their settlement time, which dictates the last day on which they can be traded. Note that the last day for trading standard options is the third Friday of the month, and they expire on the following day (Saturday). With weekly options, the last trading day depends on whether the option is p.m.-settled or a.m.-settled.

Weekly options on all equities and exchange-traded funds (ETFs) are p.m.-settled, which means that exercise and assignment are determined after the close. Therefore, the last trading day for p.m.-settled options is the expiration day, which is Friday.

Index options may be a.m.-settled or a.m.-settled. The last day for trading a.m.-settled options is the day before expiration, (Thursday.) These options are settled using an index value that is calculated based on the opening sales price of each component of the index on the expiration day, i.e., Friday.