What will happen to the option value if not sold on the expiry day?

The buyer of the option will lose the amount (premium) paid for buying the security if expired OTM. The seller of the option will get the benefit of the premium amount received at the time of selling the option if expired OTM.

What is Weekly F&O expiry?

BANKNIFTY monthly options contracts expire on the last Thursday of the expiry month and weekly options contracts expire on every Thursday of the week. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.

What happens if nifty option expires in the money?

A put option, which gives the holder the right to sell a stock at a specified price, has no value if the underlying security trades above the strike at expiry. In either case, the option expires worthless. For marketable options, the in-the-money value will be reflected in the option’s market price.

Can we square off stock options before expiry date?

If you decide to square off your position before the expiry of the contract, you will have to sell the same number of call options that you have purchased, of the same underlying stock and maturity date and strike price. The downside to this option is that you have to pay a premium to the put option writer.

What is Bank Nifty weekly expiry?

BANKNIFTY futures contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.

How can I trade Nifty options on expiry day?

Money Management for Expiry Day Nifty Option Strategy Your maximum loss in this expiry day nifty option strategy will be limited to the premium you are paying for the option. You can also refine Nifty expiry levels using the 50 point open interest values like 9450. In that case, you need to trade 9450 calls OR put.

What happens if we don’t sell Bank nifty options on expiry?

If you have bought options: Out of the money – OTM option contracts will expire worthlessly. You will lose the entire amount paid as premium.

What is Bank NIFTY (NSE)?

What is Bank Nifty? Bank Nifty (NSE) is an index which comprises of 12 stocks (that trade on NSE) from the banking industry which are the most liquid and largely capitalized. Bank Nifty stocks belong to the public as well as private sector. It was launched in the year 2003.

How often do you Trade Bank NIFTY weekly options?

The excitement and love must have increased 400\% now with the introduction of bank nifty weekly options which earlier was restricted to once every month by trading only monthly expiry contracts

Can Bank NIFTY run upto 30200 level?

As you can seen in 1H time frame, Bank Nifty is forming a parallel channel pattern. And if we find levels, 29800 level is appearing as a resistance. If bank nifty breaks this level, it can run upto 30200 level. Before it bank nifty is stuck in a range between 29400 and 29700, if it gives breakout below or above this levels, it can test the channel.

What is the base year of Bank NIFTY Index?

For instance, benchmarking of fund portfolios, introduction of new ETFs, index funds and other structured products. Though introduced in 2003, Bank Nifty Index uses Jan 2000 as the base year. The Bank Nifty share prices and values are displayed on a real-time basis during the NSE trading hours.