The date on which an options or futures contract stops trading and is settled.
The expiry date is the last date on which an options or futures contract remains valid. After this date, the contract either expires worthless, gets exercised, or is settled based on its moneyness. In India, weekly options on major indices typically expire on a fixed weekday, while monthly contracts expire on the last Thursday of the month. As expiry approaches, an option’s time value decays rapidly, a phenomenon known as theta decay.
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