Why Traders are buying contract which is going to expire in the next 30 min

[trader_programmer]

Hi @nithin,
can you or someone else from your team explain to me why are traders buying contract which is going to expire in the next 30 min?

Am I Missing something in the understand F & O.
Bcoz these contracts are going to expire worthless.

BANk NIFTY WEEKLY Expiry contract.

Thanks in advance.

[cvs]

Maybe set the category of this post to Trading or F&O or NIFTY and Bank NIFTY discussions,
so that the relevant folks who are following that category will see the post and can respond to this.

Also, some of the messages in the following thread-topic may provide some clarity…

Who buy option on expiry

I am new to option learning. I have this question. I hear this thing that almost everybody sells their option position before expiry. So if everyone sells their position before expiry then who is the last person who buys options?

[trader_programmer]

sure I will put into the category. thanks for sharing the link.

[Meher_Smaran]

Hi @trader_programmer

@trader_programmer

Am I Missing something in the understand F & O.

Your understanding is correct.

Option buying that you see in the last hour/30 mins on the expiry can be broadly done with the following reasons:

• Pure option buying as a lottery tick (Many do it with an intention of buying 1-2 rs option n sell it at 100 times profit). Unfortunate if the amount is big, but it is what it is.

• Option sellers buying back their previously sold option and closing their positions. (As there is a risk of sudden movement in premiums on some days, it is a prudent step IMO)

• Some traders do ultra quick scalping as the price movement of the options is pretty quick during the last hour but yeah, eventually, all the OTMs end at zero and even ATMs expire lower.