Options Education

OIC205W: Equity Options Expiration

Webcast Objective:

Marty Kearney of the Chicago Board Options Exchange gives an overview of equity option expiration. Clarify your understanding of expiration day itself, as well as "expiration Friday," the day before when equity options last trade and may be exercised. Learn about the mechanics and financial consequences of exercise and assignment, and which expiring equity options might be exercised automatically. Also, gain a better understanding of “Triple Witching Day” and the impact it can have on stock and option prices.

Who Should Take This Webcast:

Fundamental students

Webcast Duration:

52 Minutes

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Webcast Description:

Marty Kearney of the Chicago Board Options Exchange gives an overview of equity option expiration. Clarify your understanding of expiration day itself, as well as "expiration Friday," the day before when equity options last trade and may be exercised. Learn about the mechanics and financial consequences of exercise and assignment, and which expiring equity options might be exercised automatically. Also, gain a better understanding of “Triple Witching Day” and the impact it can have on stock and option prices.

Webcast Outline:

  1. Equity Option Expiration - Disclaimer
  2. Presentation Outline
  3. Expiration Months
  4. Expiration Day
  5. Saturday vs. Friday
  6. Expiration Friday
  7. Remember
  8. Cost of Exercise or Assignment?
  9. Long Options at Expiration: Closing Position
  10. Long Options at Expiration Exercising Position
  11. Long Options at Expiration: Exercise by Exception
  12. Short Options at Expiration: Closing Position
  13. Short Options at Expiration: Assignment
  14. Short Options at Expiration: Assignment Notice
  15. Short Options at Expiration: Anticipating Assignment
  16. Short Options at Expiration: Pin Risk
  17. Triple Witching Day
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Viewing Requirements

Webcast Disclaimer

Beginning in February 2015, the Expiration Date for monthly options was moved from Saturday to Friday. Most options that expire in a given month usually expire on the third Friday of the month.