Why in the Money Nifty Options Better to Trade in Expiry Week

In the money style nifty options are best when expiry is near, simple reason behind this is Nifty options has the premium for time (days left for expiry). When the expiry comes near this premium also gets reduced and if you have observed then you will find the all out of money nifty options expire worthlessly i.e. at 0 (zero). If you chose in the money nifty options, they will at least have the real value in it. Like Nifty future is trading at 5533 level, nifty 5500 call option must have value of at least 33. If Nifty future moves to 5560 then nifty 5500 call option will be trading at least at 60. But if nifty future is trading at 5560 and nifty 5600 call options would be at 2 or 3 only and if nifty expires at 5566 then nifty 5700 call will become worthless at expiry. If you are interested in learning more trading strategies join our technical analysis course.

About Bhaveek Patel

Bhaveek Patel is a technical analyst and investor, his areas of interest includes stock market, forex, gold.


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