On which day do most futures and options usually expire?

Most futures and options contracts typically expire on the third Friday of the month. This timing is standardized to provide consistency and predictability for traders and investors participating in these markets. By being aware of this expiration date, traders can better plan their strategies, manage their positions, and understand the implications for pricing and liquidity as the expiration approaches.

The designation of the third Friday is particularly important because it aligns with the settlement of many financial instruments. It allows participants to have a common understanding of when contracts will settle, thereby enhancing market efficiency. This consistent schedule also assists in reducing confusion and providing clear timelines for both entering and exiting positions.

In contrast, other stated days like the last day of the month or the first Monday do not have the same degree of uniformity in the futures and options markets, making them less common or practical for expirations. The last week of the month does not align with established trading practices either, as it would not sync with the significant volume of options trading centered around the third Friday.