What Is Option Expiry in Crypto? What Happens at Expiry

Option expiry is the date and time at which an option contract stops being valid. At expiry the option either settles for its intrinsic value or expires worthless. Crypto options list daily, weekly, monthly and quarterly expiries, and most contracts are cash-settled. The settlement time is set in the contract specification, and 08:00 UTC is a common choice.

By COINOTAG Research DeskLast updated October 5, 2026Sources

What happens at expiry?

If the settlement price is in the option's favor, it pays out its intrinsic value in cash. If not, it expires worthless and the buyer loses only the premium paid. Before expiry, either side can close the position.

Worked example

Take a Bitcoin call and a Bitcoin put, both with a strike of 70,000, and suppose the settlement price at expiry is 72,000. The call pays 72,000 − 70,000 = 2,000 per bitcoin. The put expires worthless.

Why it is watched

Many contracts end at the same moment on large expiry dates, which is why max pain and open interest are discussed more as an expiry approaches. Open interest for that date falls afterward. None of this means price will move in a particular direction. This text is educational and is not investment advice.

Frequently Asked Questions

3 questions

What happens to an option at expiry?

If the settlement price favors the option, it pays out its intrinsic value in cash. Otherwise it expires worthless and the buyer loses only the premium.

What time do crypto options expire?

It depends on the contract specification. 08:00 UTC is common, but the specification of the contract in question should be checked.

What expiry types exist?

Daily, weekly, monthly and quarterly expiries. Monthly and quarterly dates usually involve more contracts.

Related Terms

What is Crypto Options?
Crypto options are derivative contracts that give the holder the right, but not the obligation, to buy (a call) or sell (a put) a cryptocurrency at a fixed strike price on or before an expiry date. The buyer pays a premium up front, and that premium is the maximum possible loss, while potential profit can be much larger. Calls profit when the price rises above the strike; puts profit when it falls below. Because risk is capped yet upside stays open, options let traders hedge holdings or speculate on price and volatility — most actively on Bitcoin and Ethereum — without committing their full capital to the position.
What is Max Pain in Crypto Options?
Max pain is the strike price at which the total payout owed to option buyers at expiry is at its lowest, meaning the largest number of options expire worthless. It is calculated separately for each expiry date from the open interest at every strike. Some traders watch it as a reference level because price sometimes drifts toward it near expiry, but it is an observation, not a rule.
What is Open Interest in Crypto Options?
Open interest in options is the total number of option contracts that have not yet been closed, expired or exercised. It rises when a new buyer and a new seller open a contract and falls when existing positions are closed. It differs from trading volume: volume counts contracts that changed hands during a period, while open interest counts contracts that are still alive.
What is Implied Volatility in Crypto Options?
Implied volatility (IV) is the annualized price fluctuation the market expects for an asset, calculated backward from option prices. Unlike historical volatility, it looks forward. When option premiums rise, IV rises. IV measures the expected size of a move, not its direction, and is quoted as an annual percentage.
What is xStocks?
xStocks is the brand name for blockchain tokens that track US-listed stocks and ETFs, each collateralized 1:1 by the underlying asset. They are issued by Backed Assets (JE) Limited, a Jersey company, as tracker certificates rather than shares.