Significance of December Option contracts

Nifty Option contracts are allowed to be traded for Current Month and 2 subsequent months (ie) May, June, July. Why is December contracts available to trade? What is the significance of having such far away contract open for trading?

Thanks for the reply. But usually what’s the use of this contracts? How do institutions or individuals use it for hedging or speculation.? Its so far away right?

These articles briefly explain how LEAPS are used by investors -

Also, came across a video giving a brief overview of how option greeks work for LEAPS -

Greeks are mis priced for leaps.
Nevertheless they are not accessible in India.
OTC instruments like credit default swaps too are leaps in a way.

1 Like