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Dealer Flow
Monthly OPEX vs Weekly OPEX: How the Flows Differ
Every Friday is an expiration now, but they're not equal. The monthly OPEX carries flows an order of magnitude bigger than a normal weekly — and the tape feels it.
NoVo Options Trading · 2026
With daily and weekly expirations, “OPEX” happens constantly — but the monthly expiration on the third Friday is a different animal, because it's where the largest, longest-accumulated open interest comes due.
Weekly OPEX: modest and routine
A standard weekly expiration clears a book that built over days to a couple of weeks. There's real charm-driven pinning into the Friday close, but the scale is manageable — the map reshuffles, and the following session opens without a dramatic reset.
Monthly OPEX: the big unwind
The monthly (and especially quarterly) expiration expires open interest that accumulated over months, including large index hedges and structured positions. Into it, pinning to major strikes and max pain can be strong; through it, a huge slice of the market's gamma disappears at once. The dealer hedges tied to all that expiring gamma unwind, and the positioning that had been anchoring price is suddenly gone.
A weekly OPEX reshuffles the deck. A monthly OPEX throws a chunk of it away — and the market that's left can move very differently.
What it means for the days around it
Into monthly OPEX, expect stronger pinning and range-compression near big strikes. After it, expect the character to change — the pinning gamma is gone, so the market often “unclenches” and moves more freely in the following days. Knowing whether a given Friday is a routine weekly or the monthly big one tells you which flow — and which post-expiration behavior — to expect.
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NoVo is a software tool for market analysis and for executing trades you initiate, not financial advice. This article is general education, not investment advice. Options trading involves substantial risk of loss, up to and including your entire capital. NoVo makes no guarantee of profit, win rate, or performance, and past results do not predict future outcomes. You are responsible for your own broker account, configuration, and trading decisions.