Options Expiration (OpEx)
The date on which an options contract expires and ceases to exist — the holder must exercise, sell, or let it expire worthless.
Explained Simply
Options expiration happens on the third Friday of each month (monthly) or every Friday (weeklies). As expiration approaches, several dynamics intensify: theta decay accelerates, gamma increases for near-the-money options, and max pain effects strengthen. "Triple witching" (quarterly expiration of stock options, index options, and futures) can cause elevated volatility. Most retail options expire worthless, which is why premium-selling strategies have a statistical edge.
How Tradewink Uses Options Expiration (OpEx)
The AI factors in proximity to expiration when generating signals. Premium-selling strategies target 21-45 DTE (days to expiration) for optimal theta decay. The max pain loop intensifies scanning in the 3 days before expiration. On OpEx weeks, the AI widens stop-losses to account for increased gamma-driven volatility.
Related Terms
See Options Expiration (OpEx) in action
Tradewink uses options expiration (opex) as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.