Options Expiration Question

Discussion in 'Options' started by NOYB111, Jan 7, 2021.

  1. NOYB111

    NOYB111

    Pardon my ignorance, still learning. Just want to clarify. If I buy a vertical call option with a 1/8/21 expiration, I assume I have until 4p EST to close that option? It doesnt automatically execute at OPENING of day on 1/8 correct?

    Thanks
     
  2. While many options expire at the end of the trading day, some options are tradable up to the close on the day prior to expiration (AM Expiration). You need to consider which option you are trading, to understand when it may be traded. This is easy to determine from looking at the option chains from most brokerages. You may also want to understand when they cease trading on days other than expiration day, which may be an additional 15-min for many.
     
  3. BKR88

    BKR88

    You can continue to hold the option on expiration day but some brokers have restrictions about the final 90 minutes before market close. Expiration is end of day though, not beginning of day.
     
  4. NOYB111

    NOYB111

    Thanks for the info