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General TradingE
Expiration
Expiration is the date on which a derivatives contract, such as an option or futures contract, ceases to exist and can no longer be traded. After expiration, the holder must either exercise the contract, let it expire worthless, or roll it to a future date. Expiration dates are critical for options traders as time decay accelerates dramatically in the final days before expiry.
Example
“The trader's call options on NVDA expired worthless on the third Friday of the month because the stock price remained below the $500 strike price at expiration.”