When is options expiration 2011

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Weekly options behave like monthly options in every respect except they only exist for eight days. They are introduced each Thursday and they expire eight days later on Friday with adjustments for holidays. Investors who historically enjoyed 12 monthly expirations on the third Friday of each month can now enjoy 52 expirations per year. In , the put option was introduced. They have proven to be extremely popular as trading volume has grown handily over the decades.

Virtually any strategy you can implement with the longer-dated options you can also do with weeklys. For premium sellers who like to take advantage of the rapidly accelerating time decay curve in an option's final week of its life, the weeklys are a bonanza. Now you can get paid 52 times per year instead of Whether you enjoy selling naked puts and calls, covered calls, spreads, condors or any other type, they all work with weeklys as they do with the monthlies, just on a shorter timeline.

Within definitions. Option Expiration Date. Eric asks: Eric, Jill and John are on a weekend trip outside the city. Eric, the Beginner Hang on a second, John. John, the Trader Oh… Yes, and with gold futures too. Eric, the Beginner I remember you told me about this expiration date once but I have forgotten the details since then. Could you refresh my memory? John, the Trader No problem, really.

The expiration date is the last day of the life of an option or of a futures contract. On this day the difference between the actual price of gold and the price disclosed in the futures or in the option. Eric, the Beginner And after this date? What happens? John, the Trader You cannot sell the option or the futures — you need to settle accounts with the other side behind the futures or the option. You either pay them or receive money. Jill, the Investor Guys, the rooms are ready. Have I heard something about the expiration date?

Jill, the Investor Has he mentioned the time decay? Eric, the Beginner The time what? Jill, the Investor The time decay. It means that the market price of an option or a futures contract declines as the expiration date closes in. Jill, the Investor The price a third-party will be willing to pay you for the option. The same goes for futures. Eric, the Beginner And why would this price decline as time goes by? Jill, the Investor Because this option or futures would be worth less and less for other investors.

It is possible that the price of gold will go above the strike price before the expiration date. Put-call parity arbitrage I. Put-call parity arbitrage II. Put-call parity clarification. Option expiration and price. Next lesson. Current timeTotal duration Google Classroom Facebook Twitter. Video transcript Let's explore a bit how the price of an option can vary, or how it can relate to the actual expiration date.

So what I'm going to do is compare two similar options with the underlying stock being General Electric. And they're going to be the same in every way, except one is going to have a further out expiration date. So let's compare this call option right here. And it has an April, expiration. So it's going to expire, or the last day of trading that you could trade this option, will be the third Friday in April. Let's compare that with an option that has the same strike price, but has a December, expiration.

And you can see right when you compare the options that the one that has a further out expiration cost more.