What are the things that i need to keep in mind?
For example, can i leave the options to expire worthless just like i do in nifty? Anything else related to option behavior, margin requirement, sl placement that is significantly different?
IMO, the only key difference between sensex and nifty options lies in the underlying index they track and the specific stocks included in each index. So option trading on both follows similar principles, as they are financial derivatives that derive their value from the underlying index. You can leave options to expire worthless [not a recommendation, but following up on your query ] on both indices if they are out of the money at exp. after you assess the risk-reward and expiration dates before deciding to let options expire, including other factors that you consider for your trade. Margins can vary based on the broker and the specific contract. Typically, brokers set margin requirements based on the volatility and liquidity of the underlying index. Thus it is true that nifty options generally have higher liquidity and trading volumes compared to sensex due to the larger number of stocks included in the index. Generally higher liquidity results in better pricing and easier execution of trades. But ultimately the option is yours.
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