Automatically calculated using the option's strike nearest the current index level. Rounded to the closest at-the-money (ATM) price $- $- Premium At the Money Value(Puts) Displays the current market price of an option, thus the amount paid or received for an options contract. ...
There could then be an overnight development that causes the underlying index to open way up or down the following Friday (expiration day), but the Index option investor is “locked in.” His last trading day has come and gone, but the settlement price of the Index is determined on the ...
Final settlement Value: The method for calculating the final settlement value of a VIX Index Product is different from the method for calculating the VIX Index at times other than settlement, so there can be a divergence between the final settlement value of a VIX Index Product and the VIX In...
If you are not familiar with the important differences between these option styles, check out this post. I recommend NEVER holding RUT options into settlement Friday to avoid settlement risk. Assignment Risk Some investors use call or put spreads in IRAs. Some use bull spreads and some bear...