Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: limit who wrote (1655)	10/13/1999 1:07:00 PM
From: KFE	Read Replies (1) \| Respond to of 2241

Limit, S&P 500 settlement value is the Friday opening price. If it opened at 1325 each 1300 option you had in your account would result in a $2500 credit. S&P 100 options (OEX) settle on expiration Friday closing value. Regards, Ken

To: limit who wrote (1655)	10/13/1999 1:51:00 PM
From: Madpinto	Read Replies (1) \| Respond to of 2241

KFE answered your question quite well, but here is an interesting footnote. The price of the opening print may be outside of the high-low spread for the day. The SPX settlement price is based on the opening price for each stock in the index. Often, the stocks do not open at the same time. Therefore, on a buy program for instance, the first stocks to open may trade lower immediately offsetting the opening prints for the stocks opening later. If the market never rallies, the closing price of the SPX can end up higher than the "high" for the day!