🔹 Introduction
Expiry day trading refers to trading options contracts on their final day before expiry. In the Indian stock market, options expire weekly (Tuesday & Thursday) and for monthly on last week Tuesday & Thurseday. On this day, the market becomes highly volatile, creating both opportunities and risks for traders.
🔹 Why Expiry Day is Important
Expiry day is special because:
- Time value of options becomes zero
- Premium moves very fast
- Buyers and sellers both actively participate
This creates sharp price movements, which skilled traders can use to make quick profits.
🔹 How Expiry Day Trading Works
On expiry day:
- Traders Sell Call (CE) if they expect market to fall
- Traders Sell Put (PE) if they expect market to go up
Using platforms like Zerodha Kite provided by Zerodha, traders can easily execute trades in real-time through Sensible also.
🔹 Example
If Nifty is at 25,000:
- If market rises →Long Call option gains value
- If market falls → Long Put option gains value
Even small movement can give profit due to fast premium changes.
🔹 Tips for Beginners
- Avoid trading in first 15 minutes
- Trade only after confirming trend
- Always use stop-loss
- Start with small capital
🔹 Common Mistakes
- Overtrading
- No proper strategy
- Emotional decisions
- Ignoring risk management
🔹 Conclusion
Expiry day trading offers great opportunities but requires discipline and strategy. Beginners should focus on learning before risking large capital.