BankNiftyoptionsfeatureaweeklymaturityinsteadofthestandardmaturityon thefinalThursdayofeverymonth.Naturally,thelotsizefortradingisalsothe sameat40unitsperlot,andtheexpirationdayforweeklyoptionsisalwaysthe previousThursday.Sevenweeklyoptionswillbeavailablefortradeatanygiven time.LearnhowtomaximizeyourprofitswithWeekly Bank Nifty options tips.
IftheFedisexpectedtoannounceataperingofitsbond-buyingpolicyatits meetingonTuesday,thentheweeklyoptionsexpiringinthatweekwillreact muchmorestronglythanthemonthlyoption,becausethecontextismore immediate.Thisiswhyweeklybankniftyoptionsofferthechancetohedgerisk inamoreimmediateplight.
TradersandexchangesalikecanbenefitfromariseinBankNiftytrading volumesbecauseoftheintroductionofweeklyoptions.Foralongtime,theNifty wasthesolefocusoftradingactivityandvolume.Withthisweeklyoption,it's possibletotradeBankNiftyoptionsaswell.Thatwillprovideyouwithanother weaponinyourarsenal.
HedgingbecomesslightlymoredifficultbecausebankNiftyhashistoricallybeen twiceasvolatileastheNifty.SincetheBankNiftyissointrinsicallylinkedto developmentsintheIndianandglobalfinancialsystems,newsregardingthe indextendstospreadrapidly.Theseswingsinvolatilitywillbemoreeasily capturedbyaweekly Bank Nifty option tip,whichismoresensitiveto fluctuationsovershortertimeframes.
Calendarspreadsallowformoregranularandaccuratepositioning,allowing traderstoconsiderconsiderablyshorterspreads.Onecanmoreaccuratelyseta spreadbetweentwobankNiftyweeklycontractstoprofitfromthespreadbased oneventtimingandnewsflows.
Theweeklybankniftyoptionsoffersmallinvestorsagreatopportunitytomake moneythroughoptionselling.Theretailsectortypicallyhasnosellingchoices becauseofhighermarginneedsandincreasedriskinvolved.