What Is the Expiration Date of a Derivative?

A derivative is a financial instrument whose value is derived from the underlying asset. The expiration date is the date on which the derivative contract expires. The expiration date is also the date on which the last trading day for the derivative contract is. What happens if options expire out of the money? If an option expires out of the money, then the option holder will not receive any cash from the option writer/seller. The option will simply expire worthless. Do options expire at 4pm? No, options do not expire at 4pm. The expiration time of an option contract is the date and time when it expires. If an option expires on a Saturday, it will expire at the close of business on the Friday before the Saturday. What time do SPX options expire? SPX options expire at 10:00 am EST on the expiration date. The last trading day for SPX options is generally the Thursday before expiration.

Do options expire at 4pm or 8pm? Options expire at 4pm or 8pm?

Both 4pm and 8pm are valid expiration times for options contracts. However, which time is used will depend on the exchange where the option is traded. For example, the Chicago Board Options Exchange (CBOE) uses the 4pm expiration time, while the New York Stock Exchange (NYSE) uses the 8pm expiration time. What happens after options expire? When an option expires, the contract is no longer valid. This means that the buyer can no longer exercise their right to buy or sell the underlying asset, and the seller is no longer obligated to fulfill their side of the contract. If the option was not exercised before it expired, then both parties simply walk away from the deal and no money changes hands.