It's Expiry Day! 3 Insightful Facts from 2014

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It's the day before Christmas- and it's expiry day on a Wednesday!

Not to worry. Here are 3 things you need to know about expiry days that can help you navigate through the day.

1. Expiry Days = Massive Turnover Days on Futures and Options!

From January 2014 through November 2014, there were a total of 238 days, out of which 11 were expiry days (the last Thursday of each month, unless the Thursday happens to be a holiday in which case it is on the last Wednseday). Today happens to be one of those days since tomorrow is a holiday.

Let's compare the average turnover done on expiry days versus non expiry days during these 238 days on the NSE and BSE F&O segments.

Expiry? 603,319 Cr. 
Non Expiry? 262,636 Cr. 

That is a MASSIVE difference!!! It is almost a 230% increase in turnover done.


2. There is also a slight increase in turnover done on the Cash segment on expiry days

Using the same data, we can see the total turnover done on the Cash segment on the NSE. Although not anywhere as pronounced as the F&O segment, more turnover is done on the cash segment on expiry days.

Expiry? 19,598 Cr. 
Non Expiry? 15,714 Cr. 

That's almost a 25% increase in turnover on the cash segment.

3. BSE F&O Volume has picked up tremendously, and expiry days do not disappoint!

And each of those little upticks are expiry days. From November 2014 through December 23, the BSE F&O segment has averaged 37.7% of all F&O turnover done across both exchanges, and that figure is just rising.
Will the BSE be able to grab 50% market share of all F&O turnover anytime in the near future? Food for thought!
Stay poised, use proper risk management, and take advantage of incredible price movement and massive liquidity to day-trade your way into a profitable trading day. Now wouldn't that be a great Christmas gift!


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