What is Expiration?
Expiration is the date an option contract ends. After it, the option either had value and was exercised, or it expired worthless. As expiration approaches, the time value in an option's premium tends to erode, a process traders call time decay, which works against most option buyers as the clock runs down.
Why Expiration matters
It puts a hard deadline on an option, so timing matters as much as direction when one is involved.
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