Does the Bid-Offer Spread on an Option Typically Widen or Narrow as the Option Approaches Expiration?

The bid-offer spread on an option typically widens as it approaches expiration, especially for out-of-the-money options. This is due to a decrease in liquidity as market interest wanes and the option's value becomes more sensitive to small changes in the underlying price (higher Gamma).

Market makers increase the spread to compensate for the higher execution risk and reduced trading activity.