QuantConnect / QuantConnect/Lean

SPX-Traditional Use the Opening Sales Price To Calculate the Exercise-Settlement Value

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bug
Dominant language
C#
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Description

Expected Behavior

The Exercise-Settlement Function uses the "opening sales price" for SPX.
https://cdn.cboe.com/resources/spx/spx-fact-sheet.pdf

Actual Behavior

All options use the close of the underlying.

Potential Solution

Review implementation.

Reproducing the Problem

I suggest placing the orders to Interactive Brokers manually (for SPX, VIX, NDX) on Feb 16th to observe the result. We have verified for SPY and SPXW
CaptureOptionPositionsShort

to confirm that "opening sales price" is the open value (since it's not tradable) of SPX

Checklist
  • I have completely filled out this template
  • I have confirmed that this issue exists on the current master branch
  • I have confirmed that this is not a duplicate issue by searching issues
  • I have provided detailed steps to reproduce the issue

Contributor guide

Open the contributing guide

First steps

  1. Read the whole issue, then the project's contributing guide.
  2. Comment on the issue to say you are picking it up — it saves two people doing the same work.
  3. Fork the repository and make your change on a branch.
  4. Open a pull request that references the issue number.

Research direction

Start by reviewing the exercise-settlement implementation and the SPX fact sheet linked in the issue. Compare the current use of the underlying close with the SPX opening sales price, using the reported SPX, SPXW, SPY, VIX, and NDX behavior as context. Done means SPX exercise-settlement values use the opening sales price while other instruments retain their appropriate behavior.

Written by the indexing model from the issue text.

Assessment

Tech stack
csharp
Domain
fintech-quant
Issue type
Bug
Difficulty
4/5
Estimated time
3-5 days
Activity status
Stale
Clarity
Mostly clear
Newbie friendliness
35/100

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