Dynamic Trend 0DTE Options Trading(Expiry Day Trading)
Expiry day trading is a strategy that involves buying or selling options contracts on the last day of their validity. The goal is to profit from the increased volatility and price fluctuations that often occur as contracts near expiration
Options buyers at expiry date: One frequent expiration trading approach involves purchasing options with different strike prices. The stock's probability of moving in their favour and expiring ITM will, after that, grows. As time passes, the cost of an option's premium drops dramatically.
Options sellers at expiry date: At the time of options trading on expiry day, sellers of options take a backwards-looking perspective. Selling many contracts at or near the same strike price to accumulate as much premium as possible is a common expiry trading strategy. Sellers of out-of-the-money (OTM) options do so on the expectation that the options will eventually expire worthlessly.
This expiry-day options strategy may seem low-risk, but they are dangerous. You need a well-thought-out expiry trading strategy to reduce these dangers.
PGDM in finance, having 5+ experience in Equity, commodities , forex analysis and trading.
All 419 videos by Dharmendra →