What it means
In India each exchange has one fixed expiry day: since September 2025 that is Tuesday on the NSE and Thursday on the BSE. Nifty 50 options on the NSE and Sensex options on the BSE expire every week; other index and stock contracts expire once a month, on the last such day of the month. An option that is out of the money at the close expires worthless.
In practice
Expiry days are the busiest of the week in Indian index options. Options close to the current price change value very quickly, which draws traders looking for large percentage moves from a small premium.
Positions have to be dealt with before the close: taken off, rolled to the next expiry or left to settle. Traders who hold futures to the last day usually roll them a few days earlier, while trading in the next contract is already active.
What to watch for
Options lose their remaining time value fastest on the last day, so a buyer needs a quick, large move just to break even. Prices can swing sharply in the final hour, and option sellers face losses far larger than the premium they collected.
Related terms
5 terms- F&OFutures and options: the derivatives segment of the Indian stock market, where contracts on indices and stocks trade in fixed lots.
- OptionA contract giving the right, but not the obligation, to buy (call) or sell (put) at a set price before a set date.
- Nifty 50The benchmark index of India's National Stock Exchange, tracking 50 of the largest companies listed on it.
- SensexThe benchmark index of the Bombay Stock Exchange, tracking 30 large, well-established Indian companies.
- Futures contractA standardised agreement to buy or sell something at a set price on a future date, traded on an exchange.