Do Robinhood Options Expire at the End of the Day?

In the fast-paced world of stock trading, understanding the expiration times of options can be crucial. On Robinhood, a popular trading platform, options generally adhere to standard expiration timelines, which means they do not necessarily expire at the end of the trading day. Instead, the specifics can vary based on the type of option and the underlying asset.

For most stock options, the expiration occurs on the third Friday of the month, which is known as the "Expiration Friday." On this date, options contracts must be exercised or they expire worthless if not acted upon. However, some options, such as those for indices or certain ETFs, might have different expiration schedules, including weekly or quarterly expirations.

Furthermore, the exact time of expiration can be critical. Typically, stock options expire at the close of the market on the expiration date. For Robinhood users, this means that while the options themselves do expire at the end of the trading day on Expiration Friday, they must be mindful of the exact time the market closes. This is particularly important as the last trading time is usually 4:00 PM ET for standard stock options, but it may vary for different asset classes or special contracts.

The platform also offers flexibility with trading hours, allowing users to trade during pre-market and after-hours sessions. However, the expiration of options still aligns with the standard market close on the expiration date. Robinhood provides detailed information on each option's expiration in the trade details section, which helps users track and manage their positions effectively.

To summarize, while Robinhood options generally expire at the end of the trading day on the expiration date, traders should be aware of specific details regarding their options contracts and market closure times. This ensures they make informed decisions and take appropriate actions before the expiration occurs.