In options trading, the expiration date refers to the date by which the owner of an option must exercise their right to buy or sell the underlying asset. It is the last day on which the option can be exercised.
After the expiration date, the option becomes worthless and the right to exercise it is lost. Expiration dates are predetermined for each options contract and are usually the last Thursday of every month for Indian markets. There are also examples of options contracts that expire on a weekly basis or daily basis.
Traders can use the expiration date as a factor in their trading strategies and decision-making, as it can impact the price and volatility of the options contract.