What are A.M./P.M. Settled Options?

A.M. Settled Options establish their exercise settlement value using the value posted about 30 minutes after the market opens on the day of expiration. A.M. Settled Index Options stop trading the day before the expiration date.

P.M. Settled Options establish their exercise settlement value using the index price at market close on the day of expiration. P.M. Settled Index Options allow trading of the option on the day of expiration until the market closes.