EXPIRATION, EXPIRATION DATE, EXPIRATION MONTH - This is the date by which an option contract must be exercised or it becomes void and the holder of the option ceases to have any rights under the contract. All stock and index option contracts expire on the Saturday following the third Friday of the month specified. EXPIRATION CYCLE- Traditionally, there were three cycles of expiration dates used in options trading: JANUARY CYCLE (1): January / April / July / October FEBRUARY CYCLE (2): February / May / August / November MARCH CYCLE (3): March / June / September / December Today, equity options expire on a hybrid cycle which involves a total of four option series the two nearest-term calendar months and the next two months from the traditional cycle to which it has been assigned. FAIR VALUE - See THEORETICAL PRICE, THEORETICAL VALUE.
