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Options Expiration is Really on Friday Now

This change should streamline the options expiration system


Finally—options expiration has been simplified. Yesterday the OCC announced that after years of working to this goal, regular options expiration will now process on the third Friday of the month, rather than the third Saturday of the month.

Many traders already think this is the case, since options are no longer traded after 4:00 ET on Fridays. However, stocks can still be traded after hours—and in rare cases, fluctuating after-hours prices can cause stocks to be called away or put to you if you hold the options contract to expiration.

In addition to solving the after-hours trading issue, the switch to a true Friday expiration brings regular monthly options in line with the new weekly options, which have always expired on Fridays. Quarterly option expiration on the last day of the business quarter remains unchanged.

Carla Lake is the assistant managing editor at 24/7 Trader.

Article printed from InvestorPlace Media,

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