June 10, 2025 – Correspondence with an agent

In LRP Basic Provisions, Sec. 25(a)(1)(i) reads:

(i) The put option expiration date is within 4
calendar days of the SCE end date;

An agent asked: Do the 4 calendar days include the actual option expiration date?  For example, GFQ25 settles on 8/28/25, are the 4 days within the expiration date 8/25, 8/26, 8/27, 8/28 and 8/28, 8/29, 8/30, 8/31? Or do they not include 8/28 so the prior days would be 8/24 – 8/27 and the following days would be 8/29 – 9/1/25?

Answer:

CME provides the calendar for feeder cattle options at https://www.cmegroup.com/markets/agriculture/livestock/feeder-cattle.calendar.options.html

The last trade date for August Feeder Cattle options is August 28, 2025. This date falls “within 4 calendar days of the SCE end date” if the SCE end date is in the period August 24th through September 1. To evaluate other cases, you can use the Excel function below: