Daily Options Trading : New Expiry Dates Update

Option trading has gained widespread popularity in recent times. If you're engaged in the stock market, there's a good chance you've tried your hand at options trading at least once. And if you're familiar with option trading, you're undoubtedly acquainted with the concept of the expiration date.

In the realm of option trading, the expiration date signifies the final date of validity for derivative contracts, such as options or futures. As this expiration date approaches, individuals holding options are presented with several choices. They can opt to exercise the option, close their position, or allow the contract to expire worthless.

For instance, let's consider an investor who purchases a weekly Nifty option contract with a maturity date of September 7, 2023. This investor must decide whether to exercise the option or exit their position on or before the expiration date, which falls on September 7, 2023.

However, it's worth noting that recent changes in the expiry dates have introduced a shift, and now there are option expiries available every day of the week.

Given below is a representation of New Expiry Dates.

In this latest update to the Indian stock market's option trading expiries, several key changes have been implemented regarding the expiration dates of various index contracts. Nifty Midcap Select contracts, both weekly and monthly, will now expire on Mondays instead of Wednesdays. Similarly, Finnifty contracts, whether weekly or monthly, will have their expiration day shifted to Tuesdays. For BankNifty, weekly contracts' expiry date has transitioned from Thursday to Wednesday, while the expiry date for monthly contracts remains unchanged. Thursdays will see the expiration of both weekly and monthly contracts for Nifty and monthly contracts of  BankNifty. Lastly, BSE's Sensex and Bankex contracts will now conclude on Fridays. These adjustments in expiration dates are crucial for traders and investors to consider as they plan their trading strategies and portfolio management within the Indian derivatives market.