Bitcoin options expiry refers to the date when Bitcoin options contracts end, allowing investors to buy or sell Bitcoin at a set price before the expiration. Investors can decide to exercise options contracts that are profitable to lock in gains, and those that are not may expire worthlessly. Those who purchase options contracts will pay a premium, the cost of buying the options, which is non-refundable.
Options contracts are structured by key components such as the strike price, expiration date, and premium, which determine the conditions within which an investor may buy or sell Bitcoin at a fixed price. Bitcoin options may expire at different dates, but it is common for them to expire on the final Friday of each month.
Trading can be influenced by options expiration as the price can fluctuate as traders unwind their bets to secure profits or minimize losses. Market participants should observe expiry dates and monitor open interest for possible price direction. They also need to prepare for any volatility that the expiry may introduce.
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