The expiration date is the day when an option contract ceases to be valid.
If you want your option sale to be considered covered, the expiration date of the purchased option or the underlying asset used as protection must match the expiration date of the sold option.
Imagine you bought a Call option that expires on August 15, and you want to sell another Call expiring on September 15. At first glance, it may seem like you’re protected, but in reality, the protection only lasts until August 15. After that date, your purchased Call disappears, while the sold Call remains active — leaving you with an uncovered obligation. This creates a risk that the stock price could move significantly after the protective option expires, causing losses on your sold Call.
To prevent this situation, the system automatically checks expiration dates.
If the purchased option you intend to use as coverage expires earlier than the sold one, the system will not allow non-qualified investors to open such a position.