QQQQ. Options Trading. Options Trading. QQQQ. Trading System. QQQO. Option Trading. SPY. Options.

  Disclaimer

QQQQ (Nasdaq-100 Index Tracking Stock) is the most active ETF (Exchange Traded Fund)

NASDAQ 100 NDX Options SPX S&P 500 Options S&P 100 OEX Options DOW DJX Options QQQ Options Trading Systems

QQQQ Options Trading

Achieve superior returns with confidence! Trade QQQ options with us. Our unique, volume-based market timing strategy for the NASDAQ 100 really delivers…

Options Exchange

Trader's Forum

Options Spread

Home   |  FAQ   |  Tutorial   |  Site Guide  |  Stock Charts  |  Support  |  About Us

Login

Options Signals Signup

 FAQs
General
Our Timing Signals
Email Alerts
Alert Example
Suggested Entry Price
Suggested Exit Price
Expired Signal
Alternative Trades
Our Timing Strategy
All About Our Signals
 

FREE Options Newsletters

How much is 21 + 8?
Submit Email:

   


Options Definition: Expiration Date


On an options exchange, every 3rd Friday of the month is an expiration day – this means that a number of options series expire on this day.

At the end of the expiration date, all those call options whose strike prices are higher than the price of the underlying stock or index will be worthless. On the other hand, those options series, whose strike prices are lower, will have some intrinsic value and may be exercised. In the case of put options, the opposite applies.

The options expiration date is the most important factor in calculating options prices:

  • The Black Scholes model is used to price European style options. This is done by factoring in current stock prices, strike prices, time left until expiration, interest rates, any dividends, as well as the volatility of the underlying security.
     
  • The binomial model is used to price American style options. The binomial model calculates a tree of stock prices for various given time intervals within the expiration period. Using the volatility of a stock and the time left to expiration, the model determines how much a stock might increase or decrease in value. This calculation gives all possible prices for a stock. Then, working backward from the expiration date to the present, option prices are calculated using a risk neutral valuation. Ultimately, a each option is priced .

Option Style: There are American style and European style options. American style options can be exercised at any time up to the expiration date. European style options may be exercised only on the expiration date itself.

For Instant Access,
Sign up Now!

Just one winning trade
could pay for your membership for years to come!

 


The Information on the Site is provided for information purposes only. The Information is not intended to be and does not constitute financial advice or any other advice. The trading of stocks, futures, commodities, index futures or any other securities has potential rewards, and it also has potential risks involved. Trading may not be suitable for all users of this Website. Past performance is not necessarily an indication of future performance. You absolutely must make your own decisions before acting on any information obtained from this Website.

About Options | Options Investing | Trading Strategies | Index Trading | Trading Indicators | Trading | Trading Glossary


Disclaimer | Privacy | Contact Us | Site Map
 

New: System FAQs | Stock Charts | How to Buy on Signal? | How to Sell? | Order not filled? | How much to invest? | All Trade | All About Our Signals | Gamma | Vega | Theta | Rho
Stock/Exchanges Info:
NASDAQ Exchange | NYSE Exchange | Amex Exchange | Articles Archive |Recommended Reading

Tutorial: Options Basics | Technical Analysis | Market Timing | Stock Market | Investing Principles
Links: Top Rated | Technical Analysis | Trading Systems | Trading Soft | Technical Analysis | Quotes | options trading | News | Brokerage | Exchanges | Misc
Glossary: A-Z or A-C | D-L | M-O | P-S | T-Z

© 1997-2013 OTS - QQQ-Options-Trading.com. All Rights Reserved.

06/25/2013 - SV1