What are AM-Settled and PM-Settled Options?
Every option contract has a specific expiration date and time. The expiration can occur either in the morning (AM) or in the afternoon (PM).
AM-Settled Options:
- The value is determined by the opening price on the expiration date.
- The last trade occurs on Thursday night, and the settlement value is calculated at Friday’s market open.
- This settlement exposed to some overnight risk.
PM-Settled Options:
- These options trade until the market close on the expiration date.
- The value is determined by the closing price on the expiration date.
Underlying Symbol | Root Symbol | Settlement Type | Last Trading Day |
|---|---|---|---|
SPX | SPX | AM | T-1 |
SPXW | PM | T（Expiration Date） | |
XSP | XSP | PM | T（Expiration Date） |
VIX | VIX | AM | T-1 |
VIXW | AM | T-1 |
Note：
1. Expiring Stock Options are prohibited from position opening 33 mins before U.S. Market closes (continuous trading session)
2. Expiring Long Index Options are prohibited from position opening 1 minute before U.S. Market closes (continuous trading session)
3. Expiring Short Index Options are prohibited from position opening 20 minutes before U.S. Market closes (continuous trading session)
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