InvestorQ : How can I as a trader benefit from the weekly options that were introduced, other than the regular monthly options?
Nishant Chandani made post

How can I as a trader benefit from the weekly options that were introduced, other than the regular monthly options?

Answer
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Abhi Yadav answered.
1 year ago


Monthly call options are the normal options that expire on the last Thursday of the month which are popularly trading. A couple, SEBI and the exchanges introduced a new product called weekly options specifically with respect to Bank Nifty. The idea was to reduce the risk of options by making the expiry each week. These weekly options have attracted quite a bit of interest from traders in the recent past. The weekly options were first introduced on the Bank Nifty and have been recently allowed on the Nifty also. The weekly options reduce the risk for sellers of options as the time value is less and hence the risk is less. Also for option buyers who are looking to capitalize on very short term events, this gives a big advantage that you can just play the event and not get caught up in the market noise.