I'm trying to figure out how the settlement price is determined and if that is what the ES e-mini future options assignment/expiry is based upon.
If you go to CME Group's settlement page and search ES for Friday Sept 6 2024 it shows a settlement price of 5419.50 and a last price of 5403.75.
At what time is the settlement price determined?
How is the settlement price determined?
Is it the settlement price the only thing that determines whether or not your option contracts get assigned or expire worthless?
ES Options Settlement Time and Price
byu/Leather_Trifle_7585 inoptions
Posted by Leather_Trifle_7585
2 Comments
ES futures settlement rules here
[https://cmegroupclientsite.atlassian.net/wiki/spaces/EPICSANDBOX/pages/46141539/E-Mini+Standard+and+Poors+500+Futures](https://cmegroupclientsite.atlassian.net/wiki/spaces/EPICSANDBOX/pages/46141539/E-Mini+Standard+and+Poors+500+Futures)
Option rules
[https://www.cmegroup.com/rulebook/CME/IV/350/358A/358A.pdf](https://www.cmegroup.com/rulebook/CME/IV/350/358A/358A.pdf)
The settlement price for Friday is set at the end of the trading day, typically around 4:00 PM EST. It’s based on a special opening procedure (not just the last price) to ensure fairness. And yes, the settlement price is the deciding factor for option assignment or expiration. If the option is in the money at the settlement, expect to be assigned.
For more info on futures options, check out the [CME Group’s educational resources](https://www.cmegroup.com/education.html).