| FEB 1993
The SOQ And The S&P 500 Settlement by Thomas Cronin
The SOQ And The S&P 500 Settlement by Thomas Cronin R J. O'Brien research director and market letter writer Thomas Cronin marks his first appearance in STOCKS & COMMODITIES with some trade possibilities in options based on the difference between the closing price of the last trading day for the S&P futures and the opening price the next day of the S&P index. One of my favorite oddities in commodity trading is the unique situation that occurs quarterly in the Standard & Poor's 500 stock index futures and options, known as the special opening quotation (SOQ). The Chicago Mercantile Exchange (CME) decided to move back by one day the last trading day of both the S&P 500 stock index futures and S&P 500 options on stock index futures. Previously, expiration of stock index futures, expiration of options on stock index futures and expiration of options on stock indices all occurred on the third Friday of the contract month, a situation that resulted in erratic and unpredictable stock market trading activity when all three of these derivatives expired at the same time. To relieve some of the pressure, the CME decided to stop trading S&P 500 futures on ""the business day immediately preceding the day of determination of the final settlement price (normally the Thursday prior to the third Friday of the contract month)."" From the Clearing House rule book: ...
by Thomas Cronin
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.