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 drastically and if you have observed then you will find all the out of money nifty options expire worthlessly i.e. becomes 0 (zero). If you chose in the money nifty options, they will at least have the real value (intrinsic value) in it. Like Nifty future is trading at 7533 level, nifty 7500 call option must have value of at least 33 (its real value). If Nifty future moves to 7560 then nifty 7500 call option will be trading at least at 60. But if nifty future is trading at 7560 level, then nifty 7600 call options would be at 2 or 3 only and if nifty expires at 7566 then nifty 7600 call option will become worthless at expiry.
Options trading steps to follow:
Well, for trading on the expiry day it is always advisable to trade in the money nifty options as its less risky when compared to out of money options. In the money real value is still protected. Now to take a trade on expiry, you will need to know the direction of the market. If its up then look for buying calls, it market trend is down focus should be on buying put options. Now suppose trend is up with nifty trading at 7525 level. You should look for buying opportunities in 7500 call options. With targets and stop losses as per your risk management profile.
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