Hello Traders!
Thursday comes, volatility spikes, and suddenly your option premium starts vanishing. Sound familiar? That’s the Expiry Day Premium Decay Trap — a classic scenario where most option buyers get trapped, and smart option sellers quietly eat the premium. Today, I’ll share a simple setup to avoid this trap and trade expiry days smartly.
Why Expiry Days Are Dangerous for Buyers
The Safe Setup to Trade Expiry Days
Pro Tip for Sellers
Rahul’s Tip
Don’t chase expiry moves. Let the market give you the setup — not your emotions. Entry after confirmation saves capital and confidence.
Conclusion
Expiry days are premium-eating monsters for careless buyers. But if you follow structure, watch OI, and stay quick on execution — you can still trade profitably and safely.
What’s your expiry day setup? Drop it in the comments and let’s grow together!
Thursday comes, volatility spikes, and suddenly your option premium starts vanishing. Sound familiar? That’s the Expiry Day Premium Decay Trap — a classic scenario where most option buyers get trapped, and smart option sellers quietly eat the premium. Today, I’ll share a simple setup to avoid this trap and trade expiry days smartly.
Why Expiry Days Are Dangerous for Buyers
- Rapid Theta Decay: Time value melts fast, especially in the second half of the day.
- False Breakouts Trap Buyers: Market shows breakout moves, only to reverse within minutes.
- Low VIX + High OI = STUCK OPTIONS: When volatility is low and OI is high, premiums don’t expand even with movement.
The Safe Setup to Trade Expiry Days
- Step 1 – Wait for First 15-30 Min Candle to Form
→ Don’t rush in. Let price discovery settle. - Step 2 – Mark High/Low & CPR Levels
→ Use those as breakout zones. Avoid trading inside a narrow range. - Step 3 – Confirm with Option Chain
→ Entry only if there’s OI unwinding on one side and buildup on the other. - Step 4 – Trade Near ATM Options (Avoid Deep OTM)
→ Only buy when there's a confirmed breakout with volume. - Step 5 – Quick Entry, Quick Exit
→ No holding dreams. Exit at 30–40% move or when structure breaks.
Pro Tip for Sellers
- Short Straddles/Strangles Work Best After 11:30 AM
→ Let direction settle, then start writing premiums once movement fades. - Always Use SL or Hedge Legs
→ One big move can wipe out entire profits — expiry day is not a gamble!
Rahul’s Tip
Don’t chase expiry moves. Let the market give you the setup — not your emotions. Entry after confirmation saves capital and confidence.
Conclusion
Expiry days are premium-eating monsters for careless buyers. But if you follow structure, watch OI, and stay quick on execution — you can still trade profitably and safely.
What’s your expiry day setup? Drop it in the comments and let’s grow together!
Rahul Pal (TradingView Moderator)
Live Market Analysis on YouTube (8:45 AM - 3:30 PM): spf.bio/TArir
Free Telegram: spf.bio/c1lkb
Join Trading Community: realbullstrading.com
WhatsApp: wa.me/919560602464
Live Market Analysis on YouTube (8:45 AM - 3:30 PM): spf.bio/TArir
Free Telegram: spf.bio/c1lkb
Join Trading Community: realbullstrading.com
WhatsApp: wa.me/919560602464
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Rahul Pal (TradingView Moderator)
Live Market Analysis on YouTube (8:45 AM - 3:30 PM): spf.bio/TArir
Free Telegram: spf.bio/c1lkb
Join Trading Community: realbullstrading.com
WhatsApp: wa.me/919560602464
Live Market Analysis on YouTube (8:45 AM - 3:30 PM): spf.bio/TArir
Free Telegram: spf.bio/c1lkb
Join Trading Community: realbullstrading.com
WhatsApp: wa.me/919560602464
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.