And options expiration is a set date that terminates an options contract.  That means, as of the expiration date, that option will no longer exist.

This is important to know because you need to know when your option will no longer exist so it doesn’t expire in the middle of a swing or a trend that you were trading.  Also you don’t want that option to expire in the money on you because you will then be obligated to go and purchase the stock which will require a lot more money!  Ask your broker what happens if you forget to sell your options by expiration better in the money. Your broker will love to explain the details.

On that note, tap your options broker for the mechanics, the fundamentals of options trading. Why? Because that’s their specialty. They have to keep up with the latest and greatest news in options. They need to keep up with any changes in laws. They will know and hopefully understand any new options product that comes out. (For example they would be able to explain to you what a weekly options is. Or they could explain to you what a contingent order is.)

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