When do index options expire?
Index options offer various expiration cycles to fit different investment strategies and timeframes:
- Monthly Options
Monthly index options, the traditional format of index options, have a longer time frame, typically expiring on the third Friday of the expiry month. This duration gives traders and investors the flexibility to engage in medium- to long-term strategies, including hedging positions over an earnings season, capitalising on anticipated macroeconomic trends.
- Weekly Options
Weekly Options are short-term products designed to help give option traders more targeted exposure to market events, such as earnings reports and economic data releases. Plus, because the risk dynamics of options change as they approach expiration, some options strategies are designed for the short term.
- Quarterly Options
Quarterly Options are series of options that expire on the last trading day of each calendar quarter. Quarterly Option Series are P.M. settled, therefore, their exercise settlement value is based on the closing level of the index on the day of expiration.
