Option Expiry

Option expiry is the date and time when an options contract ceases to exist and is settled according to the terms of the contract. At this point, any intrinsic value is realized, and any remaining extrinsic value vanishes.

The approach of an expiry date often leads to increased trading volume and volatility as traders roll over their positions or close them out. In the cryptocurrency market, monthly and quarterly expiries are major events that can influence spot prices due to the massive amount of hedging activity associated with these contracts.

Understanding the mechanics of expiry, including cash settlement versus physical delivery, is crucial for anyone trading options.