Expiration
TradingDefinition
The date an option contract expires. After this date, an unexercised option is worthless. US equity options typically expire on the third Friday of each month; weekly options expire each Friday; "0-DTE" (zero-days-to-expiration) options expire same-day.
Time decay (theta) accelerates as expiration approaches — an option loses value every day even if the underlying doesn't move. Long-dated options (LEAPS) extend expiration to 1-3 years out for longer-term directional bets.
Time decay (theta) accelerates as expiration approaches — an option loses value every day even if the underlying doesn't move. Long-dated options (LEAPS) extend expiration to 1-3 years out for longer-term directional bets.