What Is the Expiration Date?
By OptionsPriceCalculator Team · Published October 13, 2026 · Updated October 13, 2026
The expiration date is the last day an option contract exists. Standard US equity options expire on the third Friday of the month, and weekly contracts expire every Friday. Once that day passes, the option is either exercised, if it still has value, or it expires worthless - there’s no extension, no grace period.
Monthly vs. Weekly Expirations
Most stocks and ETFs offer both:
| Type | Frequency | Typical use |
|---|---|---|
| Monthly | Third Friday of each month | The most liquid contracts, usually the tightest bid-ask spreads |
| Weekly | Every Friday | Shorter, more precise bets around a specific date, like an earnings report |
A handful of contracts even expire daily on the most heavily traded index products, but for individual stocks, monthly and weekly are what you’ll see on a normal option chain.
What Happens When an Option Expires
Take an AAPL $340 call bought for $11.50, expiring November 20, 2026. On that date, exactly one of two things happens:
- AAPL closes above $340 (in the money). The call has intrinsic value, and most brokers auto-exercise it, buying 100 shares at $340 on your behalf.
- AAPL closes at or below $340 (out of the money). The call expires worthless, and the $1,150 paid for it is gone.
Nothing happens gradually here - the clock just runs out. That’s different from how the option behaved every day before expiration, when its price moved continuously with the stock.
The “in the money” line isn’t a judgment call left to the broker - the Options Clearing Corporation’s exercise-by-exception rule auto-exercises any option that’s in the money by as little as $0.01 at the close on expiration day, unless the holder specifically instructs otherwise. That’s why even a penny of intrinsic value is enough to turn into 100 shares changing hands.
Why the Expiration You Choose Matters
The date you pick changes two things at once: how much time your thesis has to play out, and how fast the option loses value.
- More time costs more. A 90-day $340 call costs more than a 30-day one, all else equal, because it carries more extrinsic value.
- Theta accelerates near the end. The last few weeks before expiration are when time decay bites hardest, which is why many traders close positions well before the final date rather than holding to the wire.
- Events need room. Selling a call through an earnings date, for example, means picking an expiration far enough out - or close enough in - that the event lands where you want it relative to the contract’s life.
Picking an expiration too close to your thesis playing out is one of the most common ways a correct market call still loses money.
Frequently Asked Questions
What time of day do options expire?
The expiration date itself falls on Friday, but the formal expiration time for standard US equity options is 11:59 PM ET on Saturday. In practice, though, the deadline that matters to traders is earlier: brokers generally need exercise instructions by around 5:30 PM ET on Friday, right after the market close.
Can I sell an option on its expiration date?
Yes. You can close the position at any point during market hours on expiration day itself, which is the usual way to avoid an unwanted assignment or letting the option simply expire worthless.
Where this is used
Related terms
See how moving the expiration date changes a real trade: open the options calculator and adjust the days to expiry.
This article is for educational purposes only and does not constitute financial, investment, legal or tax advice. Options trading involves substantial risk and is not suitable for all investors.