Understand the benchmark and its market drivers after learning the option payoff.
What moves this index?
Earnings expectations for the largest constituents, investment spending, business adoption of new technology and consumer demand can all move the benchmark. Interest rates matter because the valuation of profits expected far in the future can be particularly sensitive to the discount rate. However, “rates up, index down” is not a reliable rule: earnings revisions and the reason for a yield move can offset that relationship.
Portfolio exposure and hedging
A portfolio concentrated in large growth companies may track this index more closely than a small-cap or financial-sector portfolio, but the match is still imperfect. Several holdings can share the same economic driver, creating more concentration than the number of stocks suggests. Earnings announcements from heavily weighted companies may dominate a week even when most constituents report little news.
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
Nasdaq-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.