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Settlement & Expiry

Weekly Expiry

An option that expires every week — short-dated, fast-decaying and highly traded.

Definition

Weekly expiry refers to option contracts that expire on a fixed weekday every week rather than once a month. On NSE, index options (such as NIFTY and Bank Nifty) offer weekly expiries set by the exchange, giving traders a fresh, short-dated contract each week. The settlement day is defined in the contract specifications and can be revised by the exchange.

Why it matters

Short time to expiry means weekly options have little time value and brutal theta decay — premium melts quickly, rewarding sellers in quiet markets. But gamma rises sharply near expiry, so at-the-money options can swing violently on small index moves. Liquidity is deep in the near weekly, making it the favourite for intraday and expiry-day strategies.

Example

On the morning of a weekly expiry, a NIFTY at-the-money option might carry only a small time-value cushion. By the afternoon, with hours left, that cushion has decayed to near zero — a 50-point index move can double or halve the option, illustrating the gamma risk of the final session.

See it live

Switch to the near weekly on TradePulse's live option chain and watch OI, IV and max pain reshape into expiry.

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