What Is an Option's Expiration Date on Pluang?

An option's expiration date is the last day the contract is valid — after this date, the contract stops trading and no longer holds any value. For US Stock Options and US ETF Options on Pluang, contracts are American-style, meaning the right to buy (call) or sell (put) the underlying asset can be exercised at any point before expiration, not only on the final day itself. This also means a short (sold) option position carries real early assignment risk: a counterparty can exercise against it before expiration, not only on the expiration date. On expiration day itself, Pluang doesn't let a position run passively to market close — any option still open is force-closed approximately one hour before the market closes that day. If the strike price finishes out-of-the-money relative to the underlying asset, the option typically expires worthless and the premium paid is lost.

Three mechanics to keep in mind as an expiration date approaches:

• American-style, not European-style. Because exercise rights aren't restricted to the final day, both buyers and sellers should track an option's status throughout its life, not just as expiration nears.
• Force-close, not passive settlement. Pluang closes any remaining open position roughly one hour before market close on the expiration date — plan any manual exit or roll before that window if you don't want the force-close to execute for you.
• In-the-money vs. out-of-the-money at expiration. An option that's out-of-the-money when it reaches its expiration date generally expires worthless (no intrinsic value); one that's in-the-money retains value, but is still subject to the same force-close mechanic rather than an automatic cash settlement at a final reference price.

Related questions:

Q: What happens to my position if I don't close it before the expiration date?
On the expiration date, Pluang automatically force-closes any option position that's still open, approximately one hour before the market closes for the day. This isn't a passive cash-settlement process — Pluang actively closes the position ahead of market close, so you don't need to manually exit if you're comfortable letting it run to expiration. If you'd rather exit earlier or roll the position into a new contract, you need to do so before this force-close window begins.

Q: Can my short option be assigned before the expiration date?
Yes. Pluang's US Stock Options and US ETF Options are American-style, so a buyer can exercise their contract at any point before expiration — not only on the final day. That means a short (sold) option position carries real early assignment risk: the counterparty can exercise against you whenever the option is in-the-money, potentially well before the expiration date arrives, not just once it's reached.

Q: Does an option expire worthless if it's out-of-the-money?
Generally, yes. If the strike price is out-of-the-money relative to the underlying asset's price when the contract reaches its expiration date, the option has no intrinsic value and expires worthless, and the premium paid is lost. An in-the-money option retains value through expiration, though Pluang's force-close mechanic still applies rather than letting the position run to a passive settlement at market close.

Q: What's the difference between the expiration date and exercising an option?
The expiration date is simply the deadline — the last day a contract remains valid. Exercising is the separate action of actually using the contract's right to buy (call) or sell (put) the underlying asset. Because Pluang's options are American-style, exercise can happen at any point before the expiration date; it isn't limited to the expiration date itself. A contract can therefore be exercised weeks before expiration, reach expiration untouched, or get force-closed by Pluang if it's still open when the deadline arrives.