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.

Related Options & Bonds Terms

Covered Call

Selling someone else the right to buy your stock at a higher price

Credit Rating

A grade for how likely a borrower is to repay their debt

Strike Price

The price at which an option lets you buy or sell

Call Option

A contract giving you the right to buy a stock at a set price

View all Options & Bonds terms →

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