Question

2. Look at the following options and determine to which trading cycle they belong:

IBM:

Jun - 115.00 | 0.70 | 1321

Jull - 115.00 | 2.05 | 1218

Oct - 115.00 | 3.40 | 2072

Jan - 115.00 | 5.60 | 160

Coca Cola

Jun - 60.00 | 1.60 | 1388

Jul - 60.00 | 2.15 | 196

Aug - 60.00 | 3.10 | 256

Nov - 60.00 | 3.80 | 29

Answer 1

There are three trading cycles in the option markets. They are referred to as shown below:

Cycle one: JAJO and collectively refers to options in the month of January, April, July and October

Cycle two: FMAN and collectively refers to options in the month of February, May, August and November

Cycle three: MJSD and collectively refers to options in the month of March, June, September and December

Based on these, we can assign the cycle as shown along side

IBM:

Jun - 115.00 | 0.70 | 1321 - Cycle three: MSJD

Jul - 115.00 | 2.05 | 1218 - Cycle one: JAJO

Oct - 115.00 | 3.40 | 2072 - Cycle one: JAJO

Jan - 115.00 | 5.60 | 160

Coca Cola

Jun - 60.00 | 1.60 | 1388 - Cycle three: MSJD

Jul - 60.00 | 2.15 | 196 - Cycle one: JAJO

Aug - 60.00 | 3.10 | 256 - Cycle two: FMAN

Nov - 60.00 | 3.80 | 29 - Cycle two: FMAN