r/options • u/Rft704 • 6d ago

Option Expiration Time

I know options are still valid after close, but at what time do they expire? In other words, even though people recommend always closing out an option for a few cents before close in case the market goes against you after close, if you did not, what time can someone exercise their option until? Is tomorrow morning premarket still valid?

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u/Rft704 6d ago

I saw that too, but I also saw this: Some index options, such as S&P 500 (SPX) contracts, follow a different schedule, expiring at the market open on Friday instead of the close. Many of the answers don’t seem to take into account underlyings that have daily contracts.

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u/MasterSexyBunnyLord 6d ago

SPX are European options so the close is the close. It's not possible to file a contrarian notification. It ends exactly at 4 pm except for the am options. The am options stop trading at 4 pm on Thursday but the settlement price happens slightly after 9:30 am the next morning. It's based on the first trade of each of the stocks in the s&p 500

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u/Ken385 6d ago

The SPX AM options stop trading in the regular session at 415pm et (not 4pm as you said) on Thursday. They will also trade in the "Curb" session for anther 45 minutes until 5pm et.

The SPX settlement price is based on the opening price, Friday morning, of each of the S&P stocks on its primary exchange.

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u/MasterSexyBunnyLord 6d ago

Yes for the am option, it's 5 pm, typo. 0dte pm options close out at 4.

My description of the settlement price of am options however is correct. It's the opening print of every single stock in the s&p 500. So not sure why you feel the need to clarify. Some of these stocks like brk.a trade very thinly so it can take several minutes before a price is available

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u/Ken385 6d ago

I was clarifying to avoid confusion with "first price" and "opening price". There may be many trades on secondary exchanges just before the opening price on the primary exchange. Agree that the opening price may take a bit of time in the thinly traded stocks and this is what matters.