Expiration Cycle

Posted in Finance, Accounting and Economics Terms, Total Reads: 1259

Definition: Expiration Cycle

Expiration cycle refers to the cycle of months in which the exchange traded options expire or mature.

For example, if January cycle is followed, options expire in the first month of every quarter.

Similarly, for February cycle, options expire in the second month of every quarter.

Very few highly liquid options expire in every month of the year.

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