Definition
The date an option stops existing. Standard monthly US stock and index options expire on the third Friday of the month.
The story
Many options now expire weekly, and some even daily. Four times a year, on the third Friday of March, June, September and December, stock options, index options and stock index futures all expire on the same day. Traders often call it triple witching, and trading volume can surge.
Why markets watch it
Expiration days can bring heavier trading and unusual moves as big positions are closed or rolled.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms