Options Basics

Option Expiration

The expiration date is the last trading day that an option can be exercised. There are weekly, monthly, and quarterly expirations available. Options expiration for monthly contracts is the third Friday of the expiration month.
Option Expiration
Kirk Du Plessis
Apr 19, 2021

Typically you will enter positions with different expiration month and varying dates. In today's market there are weekly, monthly, and quarterly options. However, most of the options that you should be trading for regular positions will be the monthly contracts. You should only use weekly options for earnings trades and hedging (which we discuss in other modules). It's important to remember that most option contracts generally expire the third Friday of the expiration month unless that day is a holiday in which case the last trading day will be the prior day, or Thursday.

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Option Contract Multiplier
The option contract multiplier is the number of shares an options contract represents. Stock options have a 100 contract multiplier, so one option contract controls 100 shares of stock.

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