Of late, we are seeing sudden spikes in option prices on expiry days and it becomes extremely key to navigate such days without much harm.
@nithin shared the following on Twitter about this topic
I’ve said it earlier, trading actively is the toughest way to make easy money in life. The trick to being a successful trader is to survive the bad days. Over the past year or so, there have been sudden spikes in option prices on expiry days, and traders keep getting caught off guard. One way to ensure you don’t lose money due to volatility is to trade fully hedged options strategies, such as spreads. Here’s a post by Abid @Sensibull on how spreads help. Of course, this alone won’t help. You also need to ensure that you have strategies to manage risk, size your positions appropriately etc.
As a trader, knowing when the odds are higher becomes an absolute key to success.