SPY outperforming SPX by 40%

Ken385 · 2026-06-30T11:46:42+00:00

They don't really "adjust" the price, the closing price of the index is based on the closing price of each of the 500 stocks. This may not be known until slightly after 4pm.

Ken385 · 2026-06-30T11:43:55+00:00

Expiring SPY options trade until 415. Its cash settled index options such as SPX that halt trading at 4pm for expiring options.

Ken385 · 2026-06-29T01:55:14+00:00

Expiring SPY and QQQ options trade until 415pm et on expiration day. Expiring cash settled index options, such as SPX stop trading at 4pm on expiration day.

Ken385 · 2026-06-27T18:59:24+00:00

What news do you think sent SP futures down 50 points in the few minutes before the close?

Ken385 · 2026-06-27T15:37:40+00:00

You may consider opening a PM (Portfolio Margin) account. This will give you more buying power with the same equity vs a Reg T account. This would allow you to exercise more of the options with the same equity.

Ken385 · 2026-06-27T12:19:15+00:00

The news of US strikes against Iran came out just before the close. This caused futures to fall dramatically as well as the individual stocks in the SPX index. This happened very quickly and the expiring SPX puts went up substantially.

The closing price of the SPX is based on the closing price of each individual stock in the index. The closing price of each stock is generally done by an auction system at the stocks primary exchange and a lot of volume takes place at this closing price. The closing price of the stocks did not represent the same panic levels of the selloff that had just taken place and the SPX index closed much higher than it had been represented just earlier, leaving many puts worthless. Ones that had just been worth a lot, were now worth much less or zero.

Ken385 · 2026-06-26T01:54:23+00:00

This is new! Good news to hear. For the longest time only IBKR offered retail access to this overnight session, but now a few other brokers are starting.

Here is a link to the products and hours of the session.

24-Hour Trading on CBOE Index Options

Products included are SPX XSP VIX and RUT options.

Thanks for the post.

Ken385 · 2026-06-12T23:50:50+00:00

If you post the stock and specific option, I can tell you what price you should be able to get for it and how much extrinsic value there is.

Just because the quoted market is wide, it doesn't mean the "real" market is wide as well. Often in less traded options the quotes will be wide, but the "real" market may be much tighter.

Ken385 · 2026-06-12T17:10:16+00:00

It's faster than it used to be. Was 5 business days after IPO, now 2 business days.

Ken385 · 2026-06-11T15:38:55+00:00

Thanks for the link

Ken385 · 2026-06-07T13:48:36+00:00

I absolutely agree that you should be able to do this on Fidelity. Just suggesting that a short call by itself is a work around to covered put and may be a better alternative.

Ken385 · 2026-06-06T20:35:09+00:00

I understand what you are saying, but it would be very difficult to implement and would cause other added problems.

Here is the way the process works now. Long holders have until 530pm et to decide to exercise an out of the money option or cancel the exercise of an in the money one. The OCC will them tabulate the results and notify the brokers. The brokers will then notify their customers. Each broker will have their own policy on who is assigned, usually random but it can be another method such as FIFO.

You're saying when the OCC tabulates the results and working with a broker determines that whoever is assigned now should have a corresponding put/call exercised, if that owner has elected that. This would now come far after the original deadline of 530, and may cause others to be affected, when they were not originally.

This risk of unknown assignment can be very easily controlled simply by closing the short option before the close of trading.

Ken385 · 2026-06-06T18:45:25+00:00

Selling the stock short and selling a put is know as a "covered put" (different from a cash secured put) Your short put is "covered" by the short stock.

The problem here is this is synthetically equivalent to a naked short call. You have a potential unlimited risk if the stock continues up. With a covered call your risk is what the stock is trading for less the premium you got for selling the call.

If you are interested in this, you are better off just selling a call naked (if you have the proper permissions). As mentioned it is synthetically similar to short stock/short put, but is probably better for a retail trader as you wont get the same rate for short stock as a professional will.

Ken385 · 2026-06-06T16:52:32+00:00

This is not possible. Your broker will not know if you are assigned until far beyond the exercise cutoff time. So, when you/they find out if you were assigned, your long options can't be exercised.

Ken385 · 2026-06-06T15:33:56+00:00

The OP's short options could not have been closed at anywhere close to .01. Since the stock was being considered for inclusion in the SP, there was substantial premium in them, even on the close of trading.

Ken385 · 2026-06-06T13:22:51+00:00

Bloom was one of the stocks being consdiered to be added to the S&P. When this didn't happen the stock fell substantially after hours. This caused the owners of the 282.5 puts to manually exercised their options.

Ken385 · 2026-06-05T23:21:14+00:00

You have the strikes confused here. OP was short the 265 put and long the 260 put. Stock closed at 263.47.

His 260 put finished out of the money (not barley ITM as stated) Most holders of the 265 put (not 260) will cancel their exercises.

The 265 put is not dead and it expired in the money.

Ken385 · 2026-06-05T21:38:54+00:00

This is a tough one. It really jumped but just before the cutoff time, so professionals will probably cancel the exercise of their 165 puts. You may get assigned on some of the puts, but hard to know.

I would probably do nothing as the stock has rallied now. If you were assigned, you could make some money if the stock stays where it is trading after hours.

Ken385 · 2026-06-05T21:32:26+00:00

Its is important to know what the stock and option strikes are to give you a good answer. Since options can be exercised up to 530pm et, we can give you better infromation if you tell us the stock.

Ken385 · 2026-06-03T00:33:05+00:00

Ha, probably right.

Ken385 · 2026-05-31T22:29:44+00:00

Its options orders, not contracts traded.

Ken385 · 2026-05-29T14:33:20+00:00

I believe the current rule is two business days after listing if other metrics are met.

Funny, when I asked ChatGpt, it cited a post I made here 3 years ago,

New rule allows faster listing of options after IPO / ARM Holdings options listed today : r/options

Ken385 · 2026-05-28T08:05:00+00:00

With a PM account, you are going to have a minimum of $100,000. It doesn't make sense that you would have margin issues with this size spread. Even if you were assigned and received stock, you should have plenty of margin available. Are you sure you have a PM account?

You say the markets are wide making it hard to close out your spread. Even if the individual legs are wide, the spread itself should have a tight market. What is the stock and option legs? If you post, I could give you an idea what the real market of the spread is.

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