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Monthly and Weekly Equity Option Expirations

Article Quant Q&A · Author: user1106278
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Summary

The document explains why an options chain can show several expiration dates within a single month. It distinguishes standard monthly CBOE options, whose stated expiration convention is the Saturday after the month's third Friday, from weekly options that create additional listed series. The example question observes multiple May dates for a single company and asks how they fit the monthly convention; the answer attributes the extra dates to weekly options.

This is a brief clarification of listing schedules, useful when interpreting an options chain or identifying which contract series is being viewed. It does not describe how exchanges choose every weekly listing, compare expiration schedules across markets, or discuss settlement mechanics and trading cutoffs. The explanation reflects the conventions described in the source and its historical example, so traders should verify current contract specifications for the exchange and instrument they trade.

Key ideas

  • Standard monthly CBOE options follow a third-Friday-based expiration convention.
  • Weekly option series add expiration dates outside the standard monthly cycle.
  • Multiple dates in one month's options chain can therefore represent different series rather than conflicting schedules.
  • Contract-specific exchange specifications are needed for current expiration and settlement details.

Tags

OptionsUS markets
Full text
# How are option expiration dates decided?


# How are option expiration dates decided?












I looked at the CBOE website and they say the expiration is the Saturday following the third Friday of each month. However, I look up an options chain for Google, for example, and I see three expiration dates for May: May 3, 2013, May 10, 2013, May 18, 2013.

## Answer by Richi Wa (score 5, accepted)

https://quant.stackexchange.com/a/7754

Standard Options on CBOE expire on the Saturday following the third Friday of a month. Additionally to that there exist weekly options. That's why you see these two series of options.

Shown in full with attribution under the source's licence. Licence: CC BY-SA 4.0 (Stack Exchange)

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.