Expiration Time Definition

The expiration time of an options contract or other derivative is the exact date and time when it is rendered null and void. Derivatives contracts that finish out of the money (OTM) at the time of expiration will become worthless, while in the money (ITM) contracts will be evaluated based upon the settlement price upon expiry.

The expiration time is more specific than the expiration date and should not be confused with the last time to trade that option.

The expiration time is the precise date and time at which derivatives contracts cease to trade and any obligations or rights come due or expire.

Typically, the last day to trade an option is the third Friday of the expiration month.

Derivative contracts will specify the exact expiration date and time.