Options Basics
What is Expiration Date?
The last day an option can be exercised or traded.
📖 Complete Definition
The expiration date is the final day an option contract remains valid. After this date, the option ceases to exist. Standard equity options expire on the third Friday of the expiration month, while weekly options expire every Friday. 0DTE (zero days to expiration) options expire the same day they are traded. Time decay accelerates as expiration approaches.
💡 Examples
- →A June 21 expiration means the option expires at market close on June 21st
- →0DTE options on SPX expire the same day and are popular for day trading
❓ Frequently Asked Questions
What happens on expiration day?
In-the-money options are typically exercised automatically. Out-of-the-money options expire worthless. Many traders close positions before expiration to avoid assignment.
🔗 Related Terms
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