Expiration date

Every options contract has an expiration date, the last day it can be exercised or traded. After that date, the contract simply ceases to exist. Understanding expiration is foundational because it directly determines how much time value your option has, how quickly it decays, and what happens to your position if you don't act before the deadline.

The standard expiration schedule

Monthly (standard) options, OPEX: The most widely traded options expire on the third Friday of each month. This is called OPEX (options expiration). Monthly options are available on virtually every optionable stock and ETF.

Weekly options: Available on heavily traded underlyings (SPY, QQQ, AAPL, MSFT, NVDA, and others). Weekly options expire every Friday. These are popular for short-term trades and income strategies.

Daily options (0DTE): Available on the most liquid products, SPY, QQQ, and SPX. There's an expiration every trading day, enabling intraday options strategies.

Quarterly options: Expire at the end of March, June, September, and December. Coincide with futures expirations, these are the "quadruple witching" dates.

LEAPS (Long-term options): Options with expiration dates one to three years out. Available on major stocks and ETFs. Used for long-term directional bets or as stock replacements.

DTE, Days to Expiration

DTE stands for "days to expiration" and is one of the most commonly used shorthand measurements in options trading.

• A "30 DTE iron condor" expires in approximately 30 calendar days
• A "0DTE trade" expires today
• "45 DTE" is a common target for premium sellers, capturing the steepest theta decay

DTE counts calendar days, not trading days, unless explicitly stated otherwise.

How expiry affects premium

The further away the expiration, the more premium an option carries, because there's more time for the stock to move in a favorable direction.

As expiration approaches, this time value erodes through theta decay. The decay is not linear, it accelerates dramatically in the final 30 days:

Choosing the right expiration

For premium sellers: The sweet spot is typically 30–45 DTE, you're in the steepest part of the theta decay curve, collecting meaningful premium, without the extreme gamma risk of very short-dated options. Many traders close at 50% profit around 21 DTE, then open a new position.

For premium buyers: Further out expirations are generally better, more time for the trade to develop without theta dragging the position down daily. Most directional traders buy at least 30–60 DTE to give the trade sufficient time.

For 0DTE traders: Same-day expiration is a pure theta and gamma play. The entire time value decays in a single session. High leverage, high risk, requires active monitoring throughout the day.

What happens at expiration

OTM options: Expire worthless. Buyers lose the full premium paid. Sellers keep the full premium collected.

ITM options: Are automatically exercised by most brokers (unless the holder opts out). Long ITM calls result in buying 100 shares. Long ITM puts result in selling 100 shares.

Near the money (pin risk): If the stock closes within $0.01–$0.50 of your short strike at expiration, you face uncertainty about whether you'll be assigned. This is pin risk, best avoided by closing positions before the final hour on expiration Friday.

Expiration and your trading plan

Before entering any options trade, know your answer to these questions:

1. When does this contract expire?
2. What's my plan if the stock moves against me before expiry?
3. Will I close early or let it expire?
4. What happens to my position if I'm assigned?

Related terms: OPEX, theta, 0DTE, DTE, LEAPS, pin risk, assignment, weekly vs monthly expiry

Try it on Stryke: View all upcoming expiration dates in the Options Expiration Calendar.

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