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Series 7: Investment Information & Recommendations
Series 7 practice questioneasyOptions — Options Expiration

Standard listed equity options expire on which of the following?

  1. AThe last business day of the expiration month
  2. BThe third Friday of the expiration month✓ Correct answer
  3. CThe first Friday of the expiration month
  4. DThe second Saturday of the expiration month
Explanation

Why BThe third Friday of the expiration month

Standard listed equity options expire on the third Friday of the expiration month (technically, the OCC's deadline is the Saturday following the third Friday, but the last day to trade is Friday). Some weekly and other non-standard options have different expiration cycles.

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