Market Measures

Stock Option Expiration Cycles

Monday – Friday | 9:00 – 9:20a CT.

Dec 16,  · Customer requests to move the option exercise expiration date to the right to buy itself more time to get money to fund those CLINs. I searched everywhere and I saw topics regarding negotiation option CLIN prices, exercising option CLINs that already expired, but nothing on this topic. SPX options though can only be exercised on the day of expiration. This is known as "European Exercise. Perhaps a larger difference is the settlement process. SPX options are settled in a non-standard way. The options stop trading Thursday but are not settled until Friday mypictgallery.tk: Market Measures.

Recommended Posts

Every stock has at least four expiration months trading. Under the new rules, the first two months are always the two near months, but for the two farther-out months, the rules use the original cycles. It may help to look at an example. Let's say it is the beginning of January, and we are looking at a stock assigned to the January cycle.

Under the newer rules, there is always the current month plus the following month available, so January and February will be available. Because four months must trade, the next two months from the original cycle would be April and July. So, the stock will have options available in January, February, April and July. What happens when January expires? February is already trading, so that simply becomes the near-month contract.

Because the first two months must trade options, March will begin to trade on the first trading day after the January expiration date. So the four months now available are February, March, April and July. Now comes the tricky part: The following month, April, is already trading. But with March, April and July contracts trading, that's only three expiration months, and we need four.

So, we go back to the original cycle and add October because it is the next month in the January cycle after July. So the March, April, July and October options will now be available. The same reasoning determines what months are trading for stocks on the February and March cycles. That is why in our example above, Microsoft and CitiGroup had them while Progressive did not. LEAPS are long-term options that, with some exceptions, are no more than three years out and usually trade with a January expiration date.

When it is time to add or go beyond January in the normal rotation not including the current or near-term contract , the January LEAPS that has been "hit" becomes a normal option, which also means the root symbol changes and a new LEAPS year is added. Let's go back and look at our original examples and walk through what happened to Microsoft and CitiGroup. For Microsoft we go back to May of Once the May options expired, another month needed to be added.

If your answer is no, then why do you think it would be ok for the parties to modify the option exercise date prior to its occurrence? Off the top of my head, I cannot recall any bid protest decision that precludes the exercise of an option after the deadline for exercise has passed as long as the underlying contract has not itself expired. If the contractor does not object, then I don't see a problem.

That is no different than accepting an offer after it has expired. I cannot think how exercising an option after the deadline but while the contract is still in effect would be prejudicial to the competitive system. I know of nothing in FAR that prohibits modification of a contract in order to extend the period within which an option may be exercised. I know of no protest decision that precludes the extension of the period within which an option may be exercised as the long as the contract itself is still in effect.

I think it is okay to bilaterally modify a contract to extend the period within which an option may be exercised as long as 1 the contract is still in effect at the time the modification is entered into and 2 the terms of the option itself -- e. Why does it matter that the underlying contract still be in effect in order to exercise an expired option?

Let's say an agency has a contract with sequential options and the CO fails to exercise one of the options on time. Why couldn't the CO exercise the option late assuming the contractor is ok with it and argue that she is just accepting an offer after it has expired? Contract Administration Search In. Posted December 16, Share this post Link to post Share on other sites. Perhaps a larger difference is the settlement process. SPX options are settled in a non-standard way.

The options stop trading Thursday but are not settled until Friday morning. The opening print from all the stocks in the index are taken to calculate the price.

Any existing option positions are then Cash Settled. Because of the difference in settlement and trading and the overnight time factor there can be a huge difference between where the SPX is when the options stop trading and the SET price. There is no way to predict whether the SET will be higher or lower or by how much.

The only thing that is known is that it is highly likely there will be a difference. This is like betting on red or black at the casino except you have no idea how much you can make or lose.

We prefer high probability trades.

Table properties

The reason why I'm asking the question and researching it because my contracting dept head believes the losing contractor could protest this if we change the option CLIN exercise date.

Closed On:

Under the newer rules, there is always the current month plus the following month available, so January and February will be available.

Copyright © 2015 mypictgallery.tk

Powered By http://mypictgallery.tk/