Suggest some expiry day strategies for intraday
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Best Intraday Strategies for Expiry Day
Let me make it clear that Intraday strategies do not apply for expiry days. Intraday trading means you buy and sell the stocks on the same day.
That means, you close the positions but if you extend it for the next day, then it is known to be delivery trade.
In both cases, the expiry day doesn’t exist. If you want to do expiry day trading, you will find the usage of the expiry day in futures and options trading.
In F&O, a day is fixed on which the F&O contract expires and the stock is intended to be sold before or on the day of expiry.
Best Strategies for Expiry Day Options Trading
On the expiry day, you can utilize the expiry day strategies to trade and minimize the losses that would arise otherwise.
You can adopt these strategies and they are:
For Instance,
In a bear call spread you will hold two positions, buying a call option and selling a call option with lower strike price. In this process, you will have to deal with the same underlying securities on the same expiry date.
On selling a call option, you will receive a premium from the buyer; on buying a call option, you will make a premium payment. The difference in both premiums ( receivable and payable) will lower the cost of investment. In this strategy the rewards and risks are limited.
You must utilize this strategy when you realize that the price of the underlying asset shall decline to a greater extent.
The strategy is also known to bear call credit spread as you shall gain a net credit when you enter into this trade.
Additional Information on Expiry Date @NSE/BSE
In NSE/BSE, your future and option contracts (NIFTY, NIFTY Banks, etc) will be assigned to trade expiry on specific days in a week.
If you set the expiry of the F & O contract for a week, then its expiry shall be on the assigned weekday in a week.
If you set the expiry of the F&O contract for a month/quarter then its expiry shall be on the assigned weekday of the last week in a month/quarter.
In NSE,
For NiftyBank, the expiry day will be Friday of the week.
For Financial Nifty (FINNIFTY), the expiry day will be Tuesday of the week.
NIFTY MidCap Select Index (focuses on the first 25 stocks under the Nifty Midcap 150 Index, the expiry day will be Wednesday of the week.
NIFTY 50, the expiry day will be Thursday of the week.
In BSE,
Sensex Index, the expiry day will be Friday of the week.
Bankex Index, the expiry day will be Friday of the week.
Note:
If the date of expiry happens to be in the list of calendar holidays then a day before shall be considered as expiry day.