Investing Dictionary
Options & Bonds

What is Expiration Date?

The last day an option can be used

Full Explanation

Every options contract has an expiration date. If the option is not profitable (in the money) by expiration, it expires worthless and you lose 100% of what you paid for it.

Pro Tip

Time decay accelerates as expiration approaches. Options lose value every day they don't move your way.

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