Expiry of an Option
As with any other financial contracts, options contracts also cease to expire at a particular time. NSE and BSE offer index options contracts with expiries on all days of the weeks.
Day | Expiring Asset |
---|---|
Monday | |
Tuesday | |
Wednesday | |
Thursday | |
Friday |
Options contracts exhibit peculiar traits during the times of expiry such as low premiums and higher returns. Skillful traders exploit these phenomenon to maximize their profits in F&O trading. It is to be noted that stock options expire on last Thursday of the month, where in the money options are physically settled ( settled by transfer of the shares) where as out of the money and at the money contracts expire worthless.