expiry price, page-10

re: expiry price ... wj Hi WJ ... you ask: "does anybody know how the xjo expiry price is calculated on the expiry day which is next thursday."

Yes, XJO expiry is next Thursday as you say.

The expiry date for Equity Options is usually the Thursday before the last business Friday in the month.

Index Options expire on the third Thursday of the contract month providing this is a trading day.

The settlement of Index Options is determined by a thing called OPIC (Opening Price Index Calculation). The first traded price of each stock in the underlying Index is recorded. When all stocks in the index have opened OPIC determines the Index expiry settlement amount as Index options are cash settled.


Cheers ... tight stops.


This is only my view ... read the red stuff.