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Options expiring on a market holiday (Good Friday)
When the market is closed on the day your option would normally expire, the last trading day usually moves to the trading day before. For a Friday holiday like Good Friday, that means Thursday. Your option has one less day, and any assignment sits through a long weekend.
The short answer
Most US stock options expire on a Friday. When the stock market is closed that Friday, the options can't trade that day. So the last day to trade them, and in practice the expiry, usually moves to the trading day before: Thursday.
Good Friday is the classic case. US stock markets close for it, even though many offices stay open. Some years it lands on the third Friday of the month, when the standard monthly options expire. Other weekday holidays can land on a Friday too, depending on the year.
The exchanges and the OCC (the Options Clearing Corporation, which stands behind every listed US option) post a notice for each one. Treat that notice, and your broker's message, as the source of truth for the exact date and cutoff times.
What actually changes for you
Four things, and they matter more for sellers than buyers.
- One less trading day. If you sold a weekly option, it has four trading days that week, not five. Less time for the stock to move, but also less time for you to react.
- Earlier deadlines. Your broker's cutoff to close, roll or send exercise instructions moves to Thursday. Some brokers set their own cutoff earlier in the day. Check theirs.
- A long weekend after expiry. Expiry on Thursday, then no stock trading Friday, Saturday or Sunday. Shares you get through Assignment sit in your account for three days before you can sell them.
- The calendar in your trading app. Look at the expiry date shown in the Options chain, not the week it sits in. Read the actual date before you trade.
Why the long weekend is the real risk
Sellers in the wheel strategy live with assignment. Normally, if you're assigned on a Friday, you can't sell the shares until Monday. That's already a weekend of news.
With a holiday, you're assigned Thursday and the market reopens Monday. News keeps happening while the market is shut. Companies, governments and other markets around the world don't stop. The stock can open Monday far from Thursday's close, and you can't do anything in between.
That's the same Pin risk problem as any expiry, with an extra day attached. A stock that closes right near your strike leaves you unsure whether you'll be assigned, and now you wait longer to find out what it's worth.
A worked example (hypothetical)
Here's a made-up case, an illustration, not a trade idea.
- You sold one cash-secured Put option on XYZ with a $50 strike for $1.00. You collected $100.
- That week's Friday is Good Friday. The option's last trading day moves to Thursday.
- XYZ closes Thursday at $49.50. Your put is in the money. You're assigned 100 shares at $50, which takes $5,000 of the cash you set aside.
Over the long weekend, the company makes an announcement. XYZ opens Monday somewhere new. Here's how the trade looks at each opening price:
| XYZ opens Monday at | Share value vs $5,000 paid | Premium | Total result |
|---|---|---|---|
| $53 | +$300 | +$100 | +$400 |
| $50 | $0 | +$100 | +$100 |
| $49 | −$100 | +$100 | $0 (break-even) |
| $45 | −$500 | +$100 | −$400 |
| $40 | −$1,000 | +$100 | −$900 |
The bottom rows are the honest part. You couldn't sell on Good Friday, because the market was closed. The loss was set by the opening price, not by anything you did.
What to do with a holiday week
None of these is a magic fix. They're the plan, written before the week starts.
- Look at the calendar at the start of the month. Our market hours tool shows open and closed sessions. Your broker's holiday notice gives the expiry date.
- Decide your Thursday plan on Wednesday. If your short option is near the money, choose ahead: close it, roll it, or accept assignment. Don't decide in the last hour.
- Only sell puts on stocks you'd hold through a long weekend. That's the wheel's rule anyway. A holiday week just tests it harder.
- Size for a three-day gap. If a big opening drop on the shares would hurt your account badly, the position is too large for that week.
- Watch shortened days. Some days near holidays close early. Options usually stop trading early too. Check the exchange notice for the exact time.
What about monthly options and other expiries?
The same idea applies to every expiry that lands on a closed day. A monthly option expiring on the third Friday moves just like a weekly does. Options that expire on other weekdays, like some index options, move or skip according to their own exchange's notice.
My page on the options expiry cycle explains the normal schedule. And what happens at option expiration covers the after-the-close steps, which happen on Thursday in a holiday week.
Is a holiday a corporate action?
No. Nothing about the contract changes. The strike, the shares it delivers and the symbol all stay the same. Only the dates move.
We include it with corporate actions because it's another case where the rules of the contract decide the result, not the chart. Splits, buyouts and spin-offs do change the contract. See corporate actions and your options for those.
Questions
Do options expire on Good Friday?
No. US stock markets are closed on Good Friday, so options that would expire that day usually have their last trading day moved to Thursday. Check your broker's notice for the exact cutoff times.
When will I know if I was assigned in a holiday week?
Usually before the market reopens after the holiday, as with a normal expiry. But you can't trade the shares until the market reopens, which can be three days later.
Do weekly options still expire in a holiday week?
Yes. They expire on the last trading day of that week, usually Thursday when Friday is a holiday. They just have one less day to run.
Does time decay still happen on a market holiday?
The option's price can't change while the market is closed. But when trading resumes, prices reflect the time that has passed. Option sellers often notice this around long weekends.
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