What Time Do Options Expire?

The world of options trading is filled with nuances, but one of the most critical aspects is understanding when your options contracts expire. This detail can make or break a trader's strategy, especially as expiration day approaches. Options expire on the third Friday of each month, and this timing plays a pivotal role in both the strategy and the market behavior leading up to the expiration. In this article, we’ll delve deep into the intricacies of options expiration, its implications on trading, and how to leverage this knowledge for maximum gains. We will examine the psychological factors that impact traders, the historical trends surrounding expiration dates, and strategic recommendations for trading around these pivotal moments. To make the information digestible, we will also present key data in tables that illustrate common strategies and their outcomes. By the end of this read, you will have a comprehensive understanding of not just when options expire, but how you can harness this knowledge to enhance your trading performance.