When is the expiration date for stock options traded on exchanges?

The expiration date for stock options traded on exchanges is typically set as the Saturday following the third Friday of the expiration month. This convention ensures that the last trading day for the options occurs on the third Friday, allowing traders and investors to settle their positions. By establishing the expiration on a Saturday, it provides a clear deadline for the options to expire and gives market participants a full trading day on the preceding Friday to manage their positions or exercise their options as needed.

The third Friday of the month plays a critical role because it aligns with standard market practices and helps maintain consistency across various financial instruments. This timing has been well-established, making it vital for traders to be aware of these dates when planning their investments or hedging strategies. The Saturday following this date serves as the actual cutoff for the options, emphasizing the importance of tracking these dates in the context of options trading.

Other options provided do not align with the standard expiration practices in the options markets, as they propose different days that would not typically coincide with the established conventions used in trading.