Expiry Timing

Expiry timing refers to the specific hour and day during which an option contract expires. Most exchange-traded options expire at the market close on the third Friday of the month, though weekly options have become common.

Knowing the exact timing is essential for managing the risk of exercise and assignment, especially during the final hours of the trading session. On expiry day, liquidity may dry up, and price movements can become erratic.

Traders must be prepared for the mechanics of expiry, which can involve automated exercise of in-the-money options. Proper planning for the timing of expiration is a mandatory operational detail.