Expiration date
The date after which an option ceases to exist. Standard US equity options technically expire on Saturday but trade last on Friday; many liquid products also list weekly and even daily expirations.
Expiration is the deadline that gives options their defining property: time works against buyers and for sellers, all else equal. The closer expiration gets, the faster remaining extrinsic value decays.
In-the-money equity options are exercised automatically at expiration by the OCC unless the holder instructs otherwise, so positions do not simply vanish — they can turn into share positions over a weekend.
Related terms
← All terms · Ready to see it in context? Start with thefree curriculum.