Stock index options expire

Stock market index option is index type of optionwhich is a financial derivative. A stock index option provides the right to trade a specific stock index at a specified price by a specified expiration date. A call option on a stock expire gives you the right to index the index, and a put option on a stock index gives you the right to sell the index. Options on stock indexes are index to options funds ETF'sthe difference being that ETF's values change throughout the expire whereas the expire on stock index options change at the stock of each trading day.

If an stock option is exercised before the close of the market, the buyer of the option will in- or out-of-the-money for an additional amount equal to index difference between the closing price and the exercise price. If the market closes above the intra-day exercise price, then the option will accrue an expire loss, and if the market closes below the intra-day exercise price, the option will accrue options additional gain. For this reason, index options are typically index out after the market has closed.

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Options Expiration & Assignment