Q: What is the rule for trading SPX around expiration?
A: For SPX options, it is crucial to close your positions before the expiration day of the monthly contract. Failure to do so will result in your positions being zeroed out in our evaluation. Daily SPX options must be closed by the end of the trading day at 3:15 CST or it will result in your positions being zeroes out in our evaluation.
Note: The trades will be posted to your account the following day.
Q: When do I need to close my SPX positions to avoid being zeroed out?
A: You must close your SPX positions the DAY BEFORE the expiration date of the monthly contract. If you fail to do so, your positions will be automatically zeroed out by the platform in our evaluation. Daily SPX options need to be closed by 3:00 CST. Failure to do so may result in your account being disabled (see further FAQs for clarification).
Q: Why do I need to close my SPX positions before expiration?
A: Due to the simulated nature of the evaluation, there is no clearing function that would normally handle SPX cash settlement. Therefore, we have instituted these rules to replace clearing operations.
Q: What happens if I don’t close my SPX positions before expiration?
A: Any remaining value in long options will be lost, and your positions will effectively be zeroed out. (read further for rules regarding short SPX options).