The Derivatives Market

Options Expiration (OPEX)

In this lesson, we will talk about Option Expiration or OPEX and its importance.

Unlike stocks, Options have an expiration date. Therefore, an options contract has a duration, and after the expiration, it can no longer be exercised and has no value. At expiration, we can exercise the contract or close the contract and resell it on the market.

OPEX brings volatility to the market and it can affect price movements.