Market value and P/L of Hong Kong stock options

1. Option settlement price

Due to inactive trading, there may be situations where the price of the underlying stock changes during the trading session, but the price of the option remains unchanged. 

After the close of trading, HKEx will provide the official settlement price for reference. You can click here to check the settlement status of each option (the information is usually released after 20:30 on the trading day).

2. Common questions

2.1 Why is there such a big difference between the market value of my stock options and the market value of my position after yesterday's close?

Before trading day (08:55 a.m.), we will update your option value with yesterday's settlement price published by HKEx.

After the market opens, if there is any transaction, the latest traded price will be used to calculate the market value of the option; if there is no transaction, the market value of the option will remain at the same price until the next trading day when it will be updated again to the new settlement price of HKEx.

Whether you refer to the most recent traded price or yesterday's settlement price, the market price used to calculate the market value of the option is a reference value that reflects the value of the option and does not change the size of your option position, nor does it affect your assets or trading.

It can reflect the true value of options that have not been traded for a long period of time, allowing investors to avoid making wrong investment decisions due to large deviations from the market price and true value.

2.2 I use the net assets I saw after the close of trading yesterday to plus today's P/L of the account. Why is the sum not equal to the current total assets?

If you hold options on Hong Kong shares, the problem could be caused by the inconsistency of the reference benchmark and does not affect your actual assets.

(1) In calculating today's P/L for options, yesterday's market value in the formula uses the published option settlement price.

(2) And it was calculated using the closing price from yesterday's close to this morning's open.