Crypto options expiry explained

Crypto options expiry is the last date on which the holder of an option can exercise the option. At expiry an in-the-money option is settled, on most crypto venues automatically and in cash, and an out-of-the-money option expires worthless. The premium is spent either way, so the expiry date is the deadline by which the coin’s price has to reach the strike price. For example, a $100 call with a $10 premium needs $110 by expiry.

Updated 2026-10-15

What happens to a crypto option at expiry?

At expiry, a crypto option is settled according to where the coin’s price sits against the strike price. First, expiration is “the last date on which the holder of the option may exercise it according to its terms,” according to Wikipedia’s entry on option expiration. Second, in-the-money options are exercised for the holder: clearing houses “automatically exercise by exception any option that is in the money at expiration,” and “the net value of the option is credited to the long and debited to the short position holders.” On crypto venues the same step is usually cash settlement; according to Binance Academy, Binance options are exercised automatically at expiration if in the money, with the profit paid in cash. Third, out-of-the-money options are not exercised, and the holder keeps nothing. For example, a $100 call pays $15 with the coin at $115 at expiry, and pays $0 with the coin at $99, while the premium paid on day one stays with the seller.

Why does time to expiry have a price?

Time to expiry has a price because an option with more time has more chances to end in the money. First, the premium of an option is made of intrinsic value, the gap between the coin’s price and the strike price, and time value, the rest; according to Wikipedia’s entry on options, the time value “reflects the discounted expected value of that difference at expiration.” Second, time value falls as expiry approaches; according to Binance Academy, theta is the “price decrease as expiration nears,” so an option held while the coin stands still loses value. Third, the exercise style sets when the time can be used: American-style options “can be exercised at any point before expiration,” while European-style options can only be exercised on the expiration date, and option terms “can range from days to years,” according to Binance Academy. For example, a 90-day $100 call costs more than a 30-day $100 call, because 90 days hold 3 times as many chances.

How does expiry work on Supervega?

Supervega is a crypto options app on Starknet where the expiry is called the deadline, and one target price comes with different deadlines and multipliers. First, pick an asset and set a target price: the target price plays the role of the strike price. Second, set a deadline: the deadline is the expiration date. Third, pay a small fee upfront: the fee is the premium, and the fee is the most a Supervega buyer can lose, with no liquidations and no margin calls. Supervega ranks the available options for the chosen target and deadline by multiplier, where the multiplier is how many times the fee the buyer receives if the price reaches the target; for example, a $10 fee with a multiplier of 5 pays $50, 5 times the fee. If the asset hits the target price before the deadline, the payout is sent to the wallet automatically, and above the break-even price a partial profit can be claimed early from the portfolio.