Why does the AM always have such a high amount? Also it looks like the AM is about 2/3 of the total for the day, so by 9:30am EST 2/3 of the options have expired? Thanks
This is a bit of a legacy issue. Most structured products are linked to the S&P 500 that prefer AM expiry. Many of the major institutional players also prefer the AM expiry for the index. This is why we see the AM notional higher. However, over time we are seeing more and more participants also move to the PM. It used to be far more lopsided previously with the AM being a lot bigger compared to the PM. I hope that makes sense. Thanks.
Why does the AM always have such a high amount? Also it looks like the AM is about 2/3 of the total for the day, so by 9:30am EST 2/3 of the options have expired? Thanks
This is a bit of a legacy issue. Most structured products are linked to the S&P 500 that prefer AM expiry. Many of the major institutional players also prefer the AM expiry for the index. This is why we see the AM notional higher. However, over time we are seeing more and more participants also move to the PM. It used to be far more lopsided previously with the AM being a lot bigger compared to the PM. I hope that makes sense. Thanks.