Thanks, appreciate it. While I've got you here I have another question about a RUT vertical that just expired on Mar 5. It was a +1200/-1220 put vertical. Do these types of derivitaves settle the next day? How exactly does that work?
Ye that should have settled on the 6th as it expired on the 5th.....so it should have expired worthless giving you max profit. Be very careful carrying these into expiration...as you can see if it were like a normal option and expired on Fri and was not cash settled you would have ended up with it expiring between your strikes which is not where you want to be. Just as a rule, until you have a better understanding of how these work...do not carry anything into expiration that even looks like it could move to where it expires between your strikes.
Also...closing the trade before expiration and taking profits allows you to move the capital into another trade so as to not lose out on the weekend.
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