LD Lossdog Research
topic

expiration

5 matching records.

Q&A

Could you help me understand the nuance of the potential assignment of futures options on forward slash ES and MES?

The speaker explains that futures options on ES and MES do not have early exercise, so traders do not need to worry about assignment. The options expire into cash at the closing price, and the difference between trading March options versus April/May options is the expiration into cash at the closing price.

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Actionable takeawayFutures options on ES and MES do not involve early exercise, and they expire into cash at the closing price. Traders should be aware of the expiration date when trading these options.
expiration
high confidenceVerify in video at 32:47 ↗
Q&A

When is the best time to roll futures contracts during expiration?

The best time to roll futures contracts is before the expiration date, ideally before the market closes on the day of expiration. The speaker advises traders to roll out of expiring futures contracts before the expiration date to avoid the risk of the contract being closed out.

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Actionable takeawayTraders should roll out of expiring futures contracts before the expiration date to avoid the risk of the contract being closed out.
expirationfutures trading
high confidenceVerify in video at 57:17 ↗
Q&A

Does weekly daily or monthly expirations quarterly whatever it is now that we have daily expirations matter any longer?

It doesn't matter anymore because they roll all of their longer dated put on a 45 days to the next month when there's around 21 days to expiration.

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Actionable takeawayDaily expirations don't matter as they roll longer dated options.
expirationoptions
high confidenceVerify in video at 1:20:28 ↗
Q&A

21 days expiration rolls tomorrow. Yes, it is. 21 DT is tomorrow, which is Friday. On a big movement day like today, do you seek to roll early with the move or try to avoid it on a big move in day or do you not care either way?

On a big movement day, it's prudent to roll early to adjust positions, especially if you have short delta. If you have long delta, you might wait until the next day.

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Actionable takeawayAdjust positions early on big movement days to manage risk and capitalize on market direction.
expirationmarket movement
high confidenceVerify in video at 35:05 ↗
Q&A

What is the expected market behavior before a Friday expiration?

The speaker expects a muted market behavior before a Friday expiration, with a potential for slight buying late in the day due to concerns about a markup. However, they note that this particular expiration has been very flat over the last 28 years, suggesting little to no significant movement.

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Actionable takeawayMarket behavior before a Friday expiration is typically muted, with potential for slight buying late in the day due to markup concerns, but historical data suggests minimal movement.
expirationMarket behaviorvolatility
high confidenceVerify in video at 1:29:24 ↗