Understand what happens when a contract expires.
ExpiryGyan is the definitive, free knowledge base on option & futures expiry, settlement and expiry-day market behaviour for the Indian market — every concept explained answer-first, with original diagrams and Nifty examples. Not tips. Not advice. Just how expiry actually works.
What is option expiry? Expiry is the fixed date on which an options or futures contract ceases to exist. On expiry, an in-the-money option is auto-exercised and settled (in cash for Indian index options), while an out-of-the-money option expires worthless. Indian index options (Nifty, Bank Nifty, Sensex) are cash-settled; single-stock options are physically delivered.
Why expiry matters
Expiry is the single riskiest — and most misunderstood — point in a derivative's life. Time value vanishes, gamma explodes, and settlement rules decide your real outcome. Master it and you stop being surprised.
Time value disappears
An option worth ₹120 yesterday can be worth ₹0 at expiry if it finishes out-of-the-money. See the decay curve →
Settlement decides everything
Cash for index options, physical delivery for stocks — the difference can be a costly surprise. Understand settlement →
Expiry-day behaviour is different
Pin risk, max pain and dealer hedging make the last day unlike any other. Learn the behaviour →
Explore the knowledge base
Seven deep topic clusters, from first principles to professional mechanics.
Option Expiry Basics
10 pagesExpiry is the date a derivative contract ceases to exist. On expiry the option is either exercised (if in-the-money) and cash-settled against the set…
Expiry Market Behaviour
10 pagesNear expiry, at-the-money options develop very high gamma and very fast theta decay while vega collapses. This produces distinctive behaviour — pin r…
Nifty & Index Expiry
7 pagesAs of the current exchange conventions (verify on NSE/BSE, as these have changed), all NSE derivatives — including Nifty — expire on Tuesday, and all…
Expiry & Option Greeks
8 pagesApproaching expiry, theta (time decay) accelerates and is steepest for at-the-money options, gamma spikes so delta changes violently on small moves, …
Expiry Strategy Concepts
8 pagesExpiry strategy concepts describe how traders think about the final days of a contract: harvesting theta while managing gamma risk, staying delta-neu…
Settlement
8 pagesAt expiry, in-the-money options are automatically exercised and settled; out-of-the-money options expire worthless. Indian index options and futures …
Option Chain During Expiry
8 pagesNear expiry the option chain shows open interest concentrating and unwinding at key strikes, a changing put-call ratio, migrating liquidity toward at…
Choose your path
Beginner roadmap
New to expiry? Start here and build the foundation.
Intermediate roadmap
Comfortable with the basics? Understand expiry-day behaviour.
Professional roadmap
Reason about the chain, the greeks and dealer flows.
Featured concepts
The ideas people search for most around expiry.
Know your expiry dates
Under current rules, Nifty (NSE) expires every Tuesday and Sensex (BSE) every Thursday; Bank Nifty and FinNifty are monthly-only (last Tuesday). Conventions change — always verify on the exchange.