What are the benefits of nifty weekly options contracts?

  • Because of shorter maturity periods, weekly options command a lower premium. Thus, weekly options are more affordable than monthly options.
  • Traders can take bigger positions for similar capital outlay just as monthly options.
  • Weekly options offer Arbitrage opportunity between:
    • Weekly and monthly options
    • One week to maturity options and two weeks to maturity options.
  • Liquidity will improve on account of low cost, encouraging more participants to join.
  • Weekly options facilitate improvement in market depth and better price discovery.
  • Participants in the market can also take a short-term view of the underlying.
  • Participants in weekly options are offered short term insurance for their short-term portfolio, leading to improvement in market depth and better price discovery.