Futures options? Expiration Settlement?
August 16th, 2009
nadoracing asked:
I am new to future options trading and I was just wondering if future options are settled the same way as equity options at expiration. For example I sell 3 12,000 SPM8 Calls that expire in a month. Do the options expire worthless on expiration day as long as the future price is under 12,000?
Thank you.
BOOZE
I am new to future options trading and I was just wondering if future options are settled the same way as equity options at expiration. For example I sell 3 12,000 SPM8 Calls that expire in a month. Do the options expire worthless on expiration day as long as the future price is under 12,000?
Thank you.
BOOZE
The sp 500 is below the futures contract so yes if the option expires as worthless.