Expiry Date
The deadline when options and futures live or die: rights end, obligations settle.
The expiry date is when derivatives end: options settle or die worthless, futures roll or deliver. Time decay peaks into it.
The expiry date is the last day an option or future exists: options settle or expire worthless, futures cash-settle or roll. Time value decays fastest into expiry, pinning prices near big strikes as dealers hedge, which is why expiry weeks trade differently.
How It Works
- Options lose remaining time value at expiry
- Futures must roll, close or deliver
- Big strikes pin price as dealers hedge
Trading Tips
Close or roll days before expiry, not hours
Avoid buying short-dated premium into ranges
Watch quarterly witching weeks for distortion
Expiry Date Example
Say you hold calls expiring Friday with the stock $1 under strike Thursday. Overnight nothing changes, but Friday the remaining time value evaporates and the contracts die worthless while the stock barely moved. The deadline was the position.
How Traders Use Expiry Date
Treat expiry as a hard stop on every derivative plan: defined exit date, defined roll date, no exceptions. Selling premium into expiry earns steadily until the week it does not.
Related Terms
Put Your Knowledge Into Practice
Compare regulated brokers and find the best one for your trading style.