Expiration date
Also called: expiry, expiration
An option's expiration date is the last day it can be used. After it, the option either pays out its intrinsic value or expires worthless.
Weekly options expire each Friday; monthly options expire on the third Friday of the month. The closer the expiry, the faster an option loses its time value, a decay traders call theta.
In Journey Shares
Game options expire on Fridays: two weekly expiries and one monthly, settled against the 24-hour average share price.
Related terms
- Call option: A call option is a contract that gives its buyer the right, but not the obligation, to buy a stock at a set price (the strike) before or at a set date.
- Put option: A put option is a contract that gives its buyer the right to sell a stock at a set price (the strike) before or at a set date.
- Option premium: An option's premium is the price paid to buy it.
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