How to trade intraday in options during options expiry week since premium will fall even for a small price action. (This is for only buying call and puts) not for writing.
Trader should not buy or sell in expiry week. Why? The option value is made of the PREMIUM and TIME value. The value of any option near month starting is more because Premium and Time value is more and it decreases with the passage of time and finally it becomes zero near expiry date.
In case of Nifty Index Option, if nifty moves in a range then it's premium decrease rapidly in expiry week. Better trade in Nifty future in expiry week.
To trade in Index Options trader should know about Nifty trend first. Then only you can take any position in call or put option. Nifty trend and Bank nifty Trend is updated daily here for free.
you can buy sell next month options series during the expiry week. look for highly liquid strikes near in the money.
Reply Date 09/03/2017
Hello,
Trading Nifty Options on expiry day is quite risky.
On expiry day, you may loss whole premium, because it will be ZERO till market closing if you miss the right trade.
But on expiry day, There may be a chance of Unlimited Profit with Limited Risk.
I would like to share my own strategy,
I suggest to trade the nearest option which is available in less than Rs 5/-.
And be careful after 2:50, because last 30 minutes may be very risky.
Here is my strategy:
https://profitshooter.com/nifty-options-trading-strategy-expiry-day/
So at least dont put your whole money on risk!
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