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Option Expiry and Settlement

Options have fixed expiry cycles:

Weekly expiry: For most index options (NIFTY, BANKNIFTY, FINNIFTY).

Monthly expiry: For stock options.

Last Thursday of each month for monthly contracts.

At expiry:

ATM options lose all time value.

ITM options settle for intrinsic value.

OTM options expire worthless.

Time decay accelerates dramatically in the last week.

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