Option expiry explained (weekly vs monthly)
Every option has an expiry date when it settles. Learn weekly vs monthly expiries and how expiry affects your trade.
Every option has an expiry date — the day it settles and stops trading. After expiry, an option is either worth its intrinsic value (if ITM) or nothing (if OTM). You choose the expiry from the pills at the top of the option chain.
Weekly vs monthly
- Weekly options expire each week — cheaper, faster time decay, popular for short-term and scalp trades.
- Monthly options expire once a month — more time value, steadier, used for positional trades and strategies.
Full comparison: weekly vs monthly options.
Why expiry matters
As expiry nears, an option's time value decays — faster in the final days. Near-expiry options are cheap but can lose value quickly if the move doesn't come. Practising both weekly and monthly expiries with virtual money shows you the difference safely.
FAQ
What happens on expiry day?
The option settles — ITM options realise their intrinsic value; OTM options expire worthless.
Are weekly options riskier?
They decay faster, so they're cheaper but less forgiving if the move is slow — great for short-term views.
How do I choose an expiry here?
Pick it from the expiry pills at the top of the option chain.