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Strategies & Market Trends : Tech Stock Options

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To: Jack of All Trades who wrote (58602)7/20/2001 12:25:54 PM
From: Herschel Rubin  Read Replies (2) of 58727
 
Can anyone answer what happens if the underlying stock for a call option you're long on shoots up in AFTER-HOURS on the Friday of expiration based on after-market news? Does the call option reflect the after-hours activity or only the official close?

As we know, options contracts settle on the Saturday following the Friday expiration, so it would seem that a significant after-hours move on a Friday would make a difference in the Saturday settlement. My inclination is that the "official close" is what counts, but it sure seems logical that significant after-hours moves should matter.

Comments appreciated.
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