OPEX

June 26, 2022 Off By The Balanced Trader

Options typically have monthly expirations, but CME has recently introduced weekly and daily expirations. The monthly and quarterly expirations are generally the most important. This is usually the third Friday of the month.

Most underlings have a P.M. settlement, which means you can trade that expiration until Friday’s closing bell. Because most traders use these standard monthly expirations, they are the most liquid.

Other Options expirations are not consistent. SPX monthly expirations are on Friday, but they are settled in the morning. As a result, Thursday is the last day to trade a regular SPX monthly expiration.

If you want to learn more here is a link to the CME website on options expiration.

Here is an article by myself briefly explaining what goes on and why it matters.