Can i trade options on expiration day
Multiple leg options strategies involve additional risks , and may result in complex tax treatments. Please consult a tax professional prior to implementing these strategies. Implied volatility represents the consensus of the marketplace as to the future level of stock price volatility or the probability of reaching a specific price point. The Greeks represent the consensus of the marketplace as to how the option will react to changes in certain variables associated with the pricing of an option contract.
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All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. So there is high amount of risk involved and also there is no guarantee that market will react to global news. We were able to gain extremely high returns on nifty option. Trader should not buy or sell in expiry week. In case of Nifty Index Option, if nifty moves in a range then it's premium decrease rapidly in expiry week.
Better trade in Nifty future in expiry week. To trade in Index Options trader should know about Nifty trend first. Then only you can take any position in call or put option. Nifty trend and Bank nifty Trend is updated daily here for free.
First Buy only call or put. On expiry day and next day dont do trading. On expiry day, you may loss whole premium, because it will be ZERO till market closing if you miss the right trade. I would like to share my own strategy, strategy-nifty-expiry. And be careful after 2: Here is my strategy: