• Trading Account
  • Downloads
  • Nifty Options OI
    • Nifty Max Pain Chart
    • Nifty Option Change in OI Chart
    • Nifty Put Call Ratio
    • Nifty Option Total Change in OI
    • Nifty Trend Finder
  • BankNifty Option OI
  • About Us
  • Learn Technical Analysis
    • Advance Option Trading Course

OurNifty.com

A Indian Stock Market Blog

  • Forex
  • Gold
  • Intraday Stocks
  • Midcap Stocks
  • Multibagger
  • Nifty
  • Nifty Option
  • NSE
  • Amibroker

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

By Bhaveek Patel 5 Comments

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.

If you are interested in learning more trading strategies join our technical analysis course.

Share1
Tweet
Pin
1 Shares

You Should Read This:

  1. Nifty options trading idea for next week, Buy more call options Nifty future continued its uptrend even after the financial budget was announced on 16 March 2012, traders will be looking for buying opportunity on nifty future or nifty call options is large quantities. Another trading...
  2. How to Multiply Your Money with Nifty Options Trading Strategy Nifty options buying has limited risk but unlimited profit potential, I am going to teach you a trading strategy that can easily multiply your trading capital (money). Before starting with this strategy you need to...
  3. Nifty Futures Closed Below Strong Support of 4800 level, What is Next Week Strategy for September Series, Downside Risk has Increased Trade Nifty Options Nifty futures making the series of lower lows and lower highs suggesting us the down trend for next week, we have seen a very weak closing below 4800 in Friday. So our strategy for next...
  4. Nifty Options Trading Stratregy, How to Trade EU Summit News Events Using Options, Buy Nifty 4800 Put and Nifty 5000 call There is lots of speculation in markets about the plans that will come out of the EU summit, most of the traders chose not to trade till there is any clear outlook from meeting. We...
  5. Nifty Options Stratregy for F&O Expiry of September Series, Buy Nifty 4900 Put near 26 Level Upside for this F&O Expiry in Nifty futures is capped at 5000 level, as nifty call options has highest open interest in 5000 strike. Hence upside in nifty futures is limited to 5000 levels at...

Category: Nifty Option Tags: Nifty Options/ Options Trading

About Bhaveek Patel

Bhaveek Patel is one of the most successful traders, technical analyst, and investor, his areas of interest include stock market, forex, and gold trading. Apart from this, he is often seen in the golf course. He is having more than 10 years of experience in trading, had placed his first order on 19 June 2006 with IndiaInfoline.

Comments

  1. Binary Today Trader Review says

    Your opinion on options trading is different than almost all of the
    blogs I read, I am pleased.

    Reply
  2. Binary Today says

    Why don’t we have a conversation some time with regards to binary and
    what we’re able to do to make it greater for anyone.

    Reply
  3. Binary Brain Wave Today says

    Your main take on options trading is well planned, I most certainly will share this with my visitors.

    Reply
  4. Binary Today Scam says

    This is definitely the most impressive binary trading blog sites
    I’ve examined in a long time.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post: Nifty Options Trade Setup for Guaranteed Return in Trending Market
Next Post: Trading Nifty Options (Call Put) with Levels of Nifty Future Chart

Advance Options Trading Course

options trading course

Lowest Brokerage Trading A/c

Lowest brokerage trading account opening in India

Learn Technical Analysis

technical analysis course

Recent Articles

  • ASX Penny Stocks List for 2023
  • 7 Ways to Boost Your Revenue
  • NYSE Penny Stocks List for 2023
  • Short On Cash? Here’s How You Can Manage Your Priority Spends
  • FREE Webinar on Option Chain Analysis
  • LSE Penny stocks list for trading in 2023 Should you buy?
  • BSE Penny Stocks List 2023

Popular Categories

Amibroker Finance Forex Gold Intraday Stocks IPO Midcap Stocks Multibagger NEWS Nifty Nifty Option NSE Short Term Stocks Technical Analysis

About Us | Contact Us | Privacy Policy | Disclaimer


Copyright © 2009 - 2023 OurNifty.com Trading ideas published here cannot be reproduced without permission from the author.
OurNifty is Powered by Wordpress and hosted on Digital Ocean