Hello traders!
I am learning my way through this so please pardon my ignorance. I am wondering what are the advantages/disadvantages of initiating new positions for the upcoming week (or month) on the present expiry day?
Looking forward to your gyaan.
Amit
That’s the protocol followed by many traders as most traders will exit trades on expiry day and initiate trade for next week expiry contracts, not doing so, u will lose the opportunity of over night position of thursday and keeping the expiry option for next day has no benefits.
hope this helps.
PS-(refer today’s option chain u can see the exits happening regardless of strike price.)
Thanks for your reply Karthik.
Do you think the data available on open interest, FII and DII activity on Thursday is reliable enough to take a position on Thursday?
yes the data is reliable due to it being sent directly by NSE and not some broker or a firm. You may have discrepancies during closing hours due to exits happening in MIS positions but usually that’s in 1M or 2M, open positions will be anywhere from 20-60M so that small amount would not make much difference.