Expiration

The expiration date of an option is the last day on which the option holder can exercise their right to buy or sell the underlying asset. After this date, the option becomes void and worthless if it has not been exercised. The expiration date is a critical component in options trading, as it determines the time frame for the trader to act. The value of an option decreases as it approaches its expiration date, a phenomenon known as time decay. Understanding the expiration date is essential for managing the timing and strategy of options trades.