Nifty Monthly Expiry Strategy: A Simple Guide for Smart Traders

18 Jun. 2025

Nifty Monthly Expiry Strategy: A Simple Guide for Smart Traders

If you have participated in the Indian stock market, you may have come across the word "expiry." On expiry day, traders rush to close their positions by the end of the trading day, and especially if you trade options with derivatives, it's important to know how to approach expiry. One wrong move can have a significant impact on your trading success, so in this blog article, I will talk about the Nifty expiry strategy and how you can trade smartly with a prudent Nifty monthly expiry strategy.

Whether you are new or you are a seasoned trader, this article will clear up any confusion about expiry and help you take prudent trades.

What is expiry in the Indian stock market?

Simply put, expiry is the date that a derivatives contract expires. Derivatives are simply financial contracts whose valuation is derived from underlying assets (stocks, indices, commodities, etc.). In India, some of the most popular derivatives are

Futures: Deals to purchase or sell something later on.
Options: Agreements that allow, but don't force, buying or selling at a set price by a certain date.

The Nifty index is a very popular instrument to trade options, especially on expiry day.

Monthly Expiry: What’s Changed?

For traders dealing in Bank Nifty, the number of expiry events has been cut down significantly. Earlier, Bank Nifty had weekly expiries, but now, it’s limited to a single monthly expiry. Nifty, on the other hand, continues to have weekly and monthly expiries.

This shift makes having a reliable Nifty monthly expiry strategy even more important. It’s not just about direction—it’s about timing and strategy.

Back-tested Nifty Expiry Strategy from TradingView

Don’t miss the NIFTY HNI Strategy on TradingView if you are looking for a reliable and back-tested Nifty expiry strategy. This script is intended for high-net-worth traders but works just as well for retail traders looking for disciplined returns.

You can check the strategy here:

👉 NIFTY HNI Strategy

Here is what the strategy offers:

Systematic Entry and Exit
Great strategy for Thursday expiry trades
Built for option buying and option selling is the basis of the strategy.

Why Focus on the Nifty Monthly Expiry Strategy?

Monthly expiry trading has several positive features:

Better Liquidity: Monthly expiry days perceive more volume and tighter spreads.
Volatility Opportunities: Expiry days are recognized for rapid rises or drops in price, with excellent opportunities being made for option sellers and option buyers alike.
Predictable Patterns: Numerous traders are capable of recognizing expiry day behaviors with the appropriate tools and insight.

Best Nifty Expiry Strategy for Traders

One of the most favored strategies is communicated through TradingView—the NIFTY HNI Strategy. This is primarily identified as a strategy for high-net-worth individuals (HNIs); however, it could be changed by retail traders to trade like professionals.

Some of the more common aspects of a good Nifty expiry strategy are as follows:

Straddle/Strangle Selling: A common, effective strategy for option sellers, focused on time decay (Theta).
Delta-Neutral Strategies: To confine directional risk.
Hedging Futures: To control downside.
Avoid Last-Hour Panic: The largest volatility spikes occur in the last hour of trade (usually around 2:30–3:30 PM).

Advice on How to Trade Monthly Expiry Successfully

Start Small—When testing your strategy, start small with the small lots.
Stop Loss—You need to protect your downside.
Volatility Index (India VIX)—High VIX = more premium, but also more risk.
Learn to adjust—the market is ever-changing—do not have a plan that is too inflexible.

Conclusion

Trading expiry dates can be lucrative when done properly. The success lies in your strategy, discipline, and timing. Implementing a structured Nifty monthly expiry strategy helps to reduce risk as well as your potential profit.

Do not gamble; trade and think logically, and if you have need of assistance, then just WhatsApp to 8453111888, and you will be connected to experts that can help you.