|Glossary Term: EXPIRATION CYCLE|
Definition(s) for EXPIRATION CYCLE:
1. ) refers to the three-month interval between successive option expiration dates. For example, Exxon options on the Chicago Board Options Exchange have an expiration cycle of February, May, August and November. Only the most current three options trade at any time. When the current option expires, a new option expiring in nine months begins trading.
2. ) An expiration cycle relates to the dates on which options on a particular underlying security expire. A given option, other than LEAPS®, will be assigned to one of three cycles, the January cycle, the February cycle or the March cycle.
3. ) The expiration dates applicable to the different series of options. Traditionally, there were three cycles:Cycle Available expiration months January January / April / July / October February February / May / August / November March March / June / September / December Today, equity options expire on a hybrid cycle which involves a total of four option series: the two nearest-term calendar months and the next two months from the traditional cycle to which that class of options has been assigned. For example, on January 1, a stock in the January cycle will be trading options expiring in these months: January, February, April, and July. After the January expiration, the months outstanding will be February, March, April and July.