The role of expiration dates in listed options trading
The Role of Expiration Dates in Options Trading Options trading, a dynamic financial instrument, empowers buyers to sell or trade underlying assets at predetermined prices before specific dates. This short-term investment strategy entails high risk but promises even higher rewards. Among the crucial elements of successful options trading, understanding expiration dates stands out. The Significance of Expiration Dates Expiration dates are pivotal in listed options trading, marking the point an option must be exercised or closed before turning worthless. The date varies based on the security type, commonly stocks or indexes, and the duration the option is held. Unpacking the Implications Expiration dates wield significant influence in listed options trading, creating urgency for traders. It's imperative to act before the date arrives to maximize profits or minimize losses. As the expiration date approaches, market volatility and liquidity surge, prompting increased buying and selling