Understand the benchmark and its market drivers after learning the option payoff.
What moves this index?
Global earnings, commodity prices, interest rates and sterling can affect the benchmark. Banks, resource businesses and internationally active companies respond differently to the same shock. A weaker pound may increase the sterling translation of overseas profits, but can also reflect a less favorable economic environment. The net index response depends on company exposures and what caused the currency move.
Portfolio exposure and hedging
The FTSE 100 may be an imperfect hedge for a portfolio of UK-focused smaller businesses or for a global portfolio valued in another currency. Investors using a non-sterling account face a second conversion when translating option gains or losses. Keep that account-currency effect separate from the sterling cash payoff defined by the option contract.
Trading sessions and event planning
Follow the underlying cash market, constituent earnings and relevant economic announcements, but also check the option’s own trading hours. Access outside local cash-market hours varies by contract and broker. An expiration cutoff can occur before a release you intended to cover. Use the exchange calendar and settlement procedure for the exact series rather than a generic market-hours chart.
Apply the view to an option
FTSE 100 Index Options — Return to the call and put examples.
Official references
Contract references checked 12 September 2026. Verify the selected expiry and your broker’s instructions before using a contract.
References
Currency quotations · Options on futures: exercise and assignment · Options basics
Examples are hypothetical and exclude fees and financing costs. Contract terms vary by product. Updated 14 September 2026.