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The date when an options contract becomes void and can no longer be traded.
Why It Matters
Expiration is the hard deadline for options. Unlike stocks, options don't last forever. At expiration, ITM options are automatically exercised or assigned. OTM options expire worthless. Understanding expiration cycles (weekly, monthly, quarterly, LEAPS) helps you choose the right timeframe for your trade.
Key Points
- Standard expiration: third Friday of each month at market close
- Weeklies expire every Friday; LEAPS can be 1-3 years out
- Most brokers auto-exercise ITM options at expiration; check your broker's policy
Learn More
What Are Options?
Get a complete explanation with examples, key takeaways, and a quiz to test your knowledge.
Related Terms
Common Questions
The date when an options contract becomes void and can no longer be traded. Expiration is the hard deadline for options. Unlike stocks, options don't last forever.
Expiration is the hard deadline for options. Unlike stocks, options don't last forever. At expiration, ITM options are automatically exercised or assigned. OTM options expire worthless. Understanding expiration cycles (weekly, monthly, quarterly, LEAPS) helps you choose the right timeframe for your trade.
Standard expiration: third Friday of each month at market close
Weeklies expire every Friday; LEAPS can be 1-3 years out
Most brokers auto-exercise ITM options at expiration; check your broker's policy