Expiration date

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Expiration date

The last day (in the case of American-style) or the only day (in the case of European-style) on which an option may be exercised. For stock options, this date is the Saturday immediately following the third Friday of the expiration month; brokerage firms may set an earlier deadline for notification of an option holder's intention to exercise. If Friday is a holiday, the last trading day will be the preceding Thursday.

Expiration Date

The date by which an option contract is abandoned and becomes worthless unless it is exercised. In an option contract, the holder has the right, but not the obligation, to buy or sell (depending on the type of option) the underlying asset within a certain period of time. The expiration date is the time at which the holder will lose the right to exercise the option. A European option can only be exercised on the expiration date, while an American option can be exercised at any point prior to the expiration date.

expiration date

The last day on which an option holder may exercise an option. This date is stated in the contract at the time the option is written.

Expiration date.

The expiration date is the day on which an options contract expires and becomes worthless. Listed options always expire on the Saturday following the third Friday of their expiration month.

For example, if you hold an American-style September equity option, you can exercise it any time before the end of trading on the third Friday in September, or whatever cutoff time your brokerage firm sets. In contrast, European-style options can be exercised only at expiration, usually on Friday.

Under specific circumstances, listed options will be exercised automatically at expiration unless the owner gives instructions not to exercise them.

Unlike the standard term of a listed option, the expiration date of an over-the-counter option is negotiated at the time of the trade.

References in periodicals archive ?
Asda CEO Andy Clarke said: "If something's just past its sell-by date and kept in a cold environment, I'd smell it to test whether to eat it.
Each package has a Sell-By date of May 13-June 9 and bears the establishment number EST.
The Food and Drug Administration and the Centers for Disease Control and Prevention join DPI Specialty Foods in warning consumers not to eat Mauri Gorgonzola cheese with sell-by dates of 01/13/11 and 01/14/11.
Store manager Jacqui Challinor said they were committed to reducing their impact on the environment by making positive use of goods near or on their sell-by date.
But with a fifth of people throwing away all items past their sell-by date, we are wasting a lot of the food we buy.
An undercover reporter for BBC1's Whistleblower programme has claimed she found two supermarkets ignored sell-by dates and repackaged old food at reduced prices.
Mr Bennett said some of the goods displayed 'Whoops' stickers, meaning staff had previously reduced them because products were nearing their sell-by dates.
Ms Dorchell said that the sandwiches, containing meat and egg mayonnaise posed a "real risk once past their sell-by date.
Customs & Excise will forge ahead with compulsory Duty Paid stamping of all tobacco products and drop controversial plans for a cigarette sell-by date, as predicted in The Grocer (February 19).
Hill Country Fare Beef for fajitas with a sell-by date of 5/23
A survey by the Food Safety Authority of Ireland found 23% of them placed a sell-by date on raw chicken fillets which had no basis in fact.
The sisters, who make wafers and liqueurs and bind books to earn a modest income, have had to put a one-year sell-by date on their boxes.