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Expiry Date

The expiry date is the specific calendar day on which a derivative contract reaches the end of its life and is settled — the last day it can be traded.

Quick answer: The expiry date is the specific calendar day on which a derivative contract reaches the end of its life and is settled — the last day it can be traded.

In simple words

The expiry date is simply the deadline printed on the contract. Up to and including this date you can trade the option or future; at the end of this day it is settled and ceases to exist. Knowing the exact expiry date of every position you hold is one of the most basic — and most often overlooked — parts of trading derivatives.

Purpose

The expiry date pins the contract to the calendar so that time value, settlement and the expiry schedule can all be defined against it. It is the reference point for days-to-expiry, theta and the entire expiry calendar.

Visual explanation

Expiry Date

On the expiry date the contract trades to the close; the last 30 minutes fix the settlement price.

9:15market opensIntradaygamma ↑ theta ↑3:00settlement window starts3:30close & final settlementlast 30 min → settlement price

Professional explanation

How the expiry date is defined

Each contract's expiry date is set in its specification as the designated expiry weekday of the relevant week or month. Under current rules that is Tuesday for NSE derivatives and Thursday for BSE's Sensex. If the designated day is a trading holiday, the exchange moves expiry to the previous trading day — an important exception to check around holidays.

Expiry date versus settlement date

The expiry date is the last trading day; the settlement date is when money (or shares) actually change hands, usually the next working day (T+1) for cash-settled index options. Traders sometimes confuse the two, but for planning purposes the date that matters for your position is the expiry date.

Holiday adjustments

Because expiry shifts to the previous trading day when the normal expiry weekday is a holiday, the effective expiry can land on an unusual day in holiday weeks. This is a common source of confusion, so the exchange publishes an expiry calendar that supersedes the general weekday rule.

Practical example (Nifty / Bank Nifty)

Illustrative — Nifty spot 25,000, lot size 75

You hold a Nifty weekly option. The normal expiry weekday is Tuesday, but this particular Tuesday is a market holiday. The exchange therefore moves the expiry to the preceding Monday — so your 'weekly' option actually expires a day earlier than the usual rule suggests. Always check the exchange's expiry calendar in holiday weeks.

NSE and BSE publish official expiry calendars each year; when Diwali, Independence Day or other holidays fall on an expiry weekday, the listed expiry date is brought forward, and that published date—not the generic weekday—is authoritative.

Advantages

  • Gives every contract a precise, published deadline for planning and pricing.
  • Anchors days-to-expiry, theta and the expiry calendar.
  • Holiday adjustments are published in advance, so the true date is always knowable.

Limitations

  • The generic weekday rule can mislead in holiday weeks — you must check the calendar.
  • Confusing expiry date with settlement date can cause funds-availability surprises.
  • Different exchanges expire on different weekdays, which is easy to mix up.

Why it matters in practice

  • Record the exact expiry date of every open position — never rely on memory of the weekday alone.
  • In holiday weeks, verify the adjusted expiry date on the exchange calendar.
  • Distinguish the expiry date (trading ends) from the settlement date (funds move).

Common mistakes

  • Assuming expiry is always the same weekday and missing a holiday-adjusted early expiry.
  • Mixing up NSE (Tuesday) and BSE (Thursday) expiry weekdays.
  • Treating the settlement date as the deadline to trade — trading ends on the expiry date.

Professional usage

Professionals keep an expiry calendar for every instrument they trade, flag holiday-adjusted dates in advance, and plan entries, exits and rollovers around the exact expiry date rather than the generic weekday. Precision here prevents the classic error of being caught in a contract that expired a day early.

Key takeaways

  • The expiry date is the contract's last trading day, after which it is settled and gone.
  • It is the designated weekday (Tuesday NSE, Thursday BSE) but shifts earlier around holidays.
  • The expiry date is not the settlement date, when funds or shares actually move.

Frequently asked questions

What is the expiry date of an option?
It is the calendar day on which the option contract ends and is settled — the last day it can be traded. After this date the option no longer exists.
How is the expiry date decided?
By the contract specification: the designated expiry weekday of the week or month (currently Tuesday on NSE, Thursday on BSE), adjusted to the previous trading day if that weekday is a holiday.
Is the expiry date the same as the settlement date?
No. The expiry date is the last trading day; the settlement date, when cash or shares actually change hands, is usually the next working day for cash-settled index options.
What happens if the expiry day is a holiday?
The exchange moves expiry to the previous trading day. So in a holiday week the contract can expire a day earlier than the usual weekday rule suggests — always check the exchange calendar.
Do NSE and BSE have the same expiry date?
Not necessarily. Under current rules NSE derivatives expire on Tuesday and BSE's Sensex on Thursday, so index contracts on the two exchanges can have different expiry dates in the same week.
Where can I find the exact expiry date?
On the official NSE or BSE expiry calendar, and in your broker's contract details. In holiday weeks, the published calendar is authoritative over the generic weekday rule.
Can the expiry date change after a contract is listed?
The scheduled date generally does not change except for holiday adjustments. However, the exchanges have revised the expiry-weekday rules themselves over time, affecting future contracts.
What is 'days to expiry'?
It is the number of calendar (or trading) days from today until the contract's expiry date. It drives time decay and is a key input to option pricing and the greeks.
Does the expiry date affect option price?
Yes, strongly. The further the expiry date, the more time value the option has; as the expiry date nears, time value decays, fastest in the final days.
What time on the expiry date does trading stop?
At the normal market close, 3:30 PM IST. The final settlement price is derived from the underlying's last 30 minutes of trading that day.
Is the last Thursday still the monthly expiry?
Not for NSE. Since the 2025 change, NSE monthly contracts expire on the last Tuesday; BSE's Sensex expires on the last Thursday. The old 'last Thursday for everything' rule no longer holds.
What is the expiry date for weekly versus monthly contracts?
A weekly expires on the designated weekday of its week; a monthly expires on the last such weekday of the month. On that final week both coincide.

Voice search & related questions

Natural-language questions people ask about Expiry Date.

When does my option expire?
On its expiry date — the designated expiry weekday (Tuesday for NSE, Thursday for BSE Sensex), or the previous trading day if that is a holiday. Check your contract details for the exact date.
What day is Nifty expiry this week?
Under current rules Nifty expires on Tuesday, unless that Tuesday is a holiday, in which case it moves to the previous trading day. Verify on NSE's calendar.
Is expiry date the last day to sell my option?
Yes. You can trade the option up to the close on its expiry date; after that it is settled and can no longer be bought or sold.
What happens if expiry falls on a holiday?
The exchange brings expiry forward to the previous trading day, so the contract expires a day earlier than the normal weekday.
Do all options expire on the same day?
No. Different exchanges and instruments have different expiry weekdays, and weekly versus monthly contracts expire on different dates, so always check each contract.

Sources & references

Last reviewed 11 July 2026. Educational content only — not investment advice. Exchange rules change; verify current conventions on NSE/BSE.

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Educational content only — not investment advice. Examples use illustrative numbers and current exchange conventions that may change. Options and futures involve substantial risk. See our Risk Disclosure and SEBI Disclaimer.