As I have read somewhere here in zerodha, avoid intraday trading on expiry date for current month contract. It could wobble in any direction. Someone please correct me if I am wrong.
I would prefer to trade the next month series unless I’m writing options to collect residual premiums.
it depends the type of your trade, if your writing OTM option risk is less and so profit. If you are writing ITM,ATM options then risk is moderate and high respectively. As you know, risk is proportionate to probability to get profit. If you are buying option, remember that you need to fight high value of theta, the decaying factor. and delta value would be almost equal to 1 or -1 on ITM,ATM options. Again risk is high, probability to get profit is high.
Again…i earn big time on expiry days when it comes to futures…its not market u trade its ur nature,behavior psyh u trade. No matter what people will tell u …u would do whats in u…what u have learned thru environment,family,attitude,experiences…but yes if u are safe trade do not trade on expiry day. If direction is clear then take next month position, if u want check the premiums of both months and based on direction trade both months(sort of hedge or calender trade to earn in premiums)
sorry, i forgot to mention that i trade only futures. pls advise once again when free. thanks…
Sorry @Karunakumari I am not having much experience in futures trading, I trade only stocks and options. Anyway best of luck to get answer.