Option Tracker
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5 min read

Expiration Management Guide

Managing expiring options, understanding alerts, and taking action before expiration.

Options have an expiration date, after which they become worthless (OTM) or get exercised (ITM). This guide helps you manage expiring options and understand the alerts the app provides.

Days to Expiration (DTE)

Every open trade shows its DTE - the number of days until expiration. This helps you prioritize which positions need attention.

DTE Badge Colors

| Badge | Color | Meaning | |-------|-------|---------| | 15 DTE | Gray | Normal timeframe | | 7 DTE or less | Amber | Approaching expiration | | 2 DTE or less | Red | Expiring very soon | | Expires Today | Red (pulsing) | Expires today! |

The pulsing "Expires Today" badge is designed to catch your attention for same-day expirations.

Expiration Notifications

The app sends notifications at key milestones:

7 Days Before

"AAPL $185 Call expires in 7 days"

This is your first reminder to start thinking about the position. Consider:

  • Is the trade profitable? Should you close now?
  • Is it going against you? Should you roll or cut losses?
  • Are you comfortable letting it run to expiration?

2 Days Before

"AAPL $185 Call expires Friday - take action"

With 2 days left, you need to decide soon. Options:

  • Close the position
  • Roll to a new expiration
  • Let it expire (if you're comfortable with the outcome)

Expiration Day

"AAPL $185 Call expires today"

Final reminder. If you need to act, do it before market close. After-hours, you can't close the position.

Viewing Notifications

  1. Click the bell icon in the top navigation
  2. Unread notifications appear with a badge count
  3. Click a notification to go to the related trade
  4. Click the X to dismiss individual notifications
  5. Use "Mark all as read" to clear the count

Actions Before Expiration

Close the Position

If you want to realize your profit or cut your loss:

  1. Find the trade on the Trades page
  2. Click the three-dot menu
  3. Select Close
  4. Enter the closing price
  5. The P&L becomes realized

Roll to New Expiration

If you want to extend the position:

  1. Find the trade on the Trades page
  2. Click the three-dot menu
  3. Select Roll
  4. Choose a new expiration date
  5. Optionally adjust the strike
  6. The old trade closes, new trade opens

Rolling captures:

  • Net credit/debit from the roll
  • Links the trades in a roll chain
  • Maintains cost basis accuracy

Let It Expire

If you're comfortable with the outcome, do nothing:

OTM at expiration:

  • Long options: Expire worthless (100% loss of premium)
  • Short options: Expire worthless (100% gain of premium)

ITM at expiration:

  • Calls may be exercised (you buy/sell stock)
  • Puts may be exercised (you buy/sell stock)

Assignment Risk (Short Options)

When you sell options, you face assignment risk. The app shows warnings:

Assignment Risk Badge (Amber)

Appears on short options that are ITM within 7 days of expiration.

What it means: The buyer could exercise early, though it's less common.

High Assignment Risk Badge (Red)

Appears on short options that are ITM within 2 days of expiration.

What it means: Assignment is very likely. Prepare for stock delivery.

For Covered Calls

If assigned, you'll sell your shares at the strike price. Make sure you're okay with that outcome before expiration.

For Cash-Secured Puts

If assigned, you'll buy shares at the strike price. Ensure you have the cash and want the stock.

Filtering by Expiration

To focus on expiring trades:

  1. Go to the Trades page
  2. Use the date filter or sort by expiration
  3. Or use Command Palette (⌘K) and search "expiring"

Settlement After Expiration

When options expire, the app records the settlement:

OTM Settlement

The trade shows:

  • Status: EXPIRED
  • Settlement Price: $0.00
  • Settlement P&L: (your original premium received/paid)

ITM Settlement

For ITM options that settle:

  • Settlement Price: Intrinsic value at expiration
  • Settlement P&L: Intrinsic value minus your entry price

If you were assigned, a new stock position appears linked to the original trade.

Calendar View

The Calendar page shows all expirations visually:

  1. Go to Calendar in the navigation
  2. See trades marked on their expiration dates
  3. Click a date to see all trades expiring that day
  4. Plan ahead for busy expiration days

Tips for Expiration Management

  1. Set reminders early - Don't wait until expiration day to decide

  2. Consider theta decay - Options lose value faster as expiration approaches

  3. Check assignment risk - For short options, know if you're ITM

  4. Have a plan - Know what you'll do if ITM or OTM before expiration

  5. Watch the clock - On expiration day, you can only trade until market close

  6. Review notifications - Check the bell regularly for expiration alerts

  7. Use the calendar - Visual view helps spot busy expiration periods