Monthly Expiry
A monthly expiry option expires on the last designated expiry weekday of its contract month — currently the last Tuesday for NSE contracts (Nifty, Bank Nifty, FinNifty) and the last Thursday for BSE's Sensex.
Quick Answer
Monthly expiry contracts run for several weeks and settle on the last Tuesday of the month for NSE instruments like Nifty and Bank Nifty, or the last Thursday for BSE's Sensex. They hold more time value than weeklies — a Nifty 25,000 monthly call near ₹350 versus ₹110 for the weekly — though decay accelerates sharply in the final week.
Definition of Monthly Expiry
Monthly Expiry is a derivative contract that ends on the last designated trading weekday of its contract month — the benchmark monthly series carrying most open interest and rollover activity.
Key takeaways on Monthly Expiry
- Monthly options expire on the last expiry weekday — last Tuesday (NSE) or last Thursday (Sensex on BSE).
- They hold more time value and decay more gently than weeklies, until the final week.
- Bank Nifty and FinNifty have monthly expiry only, since weeklies were removed in 2024.
Monthly Expiry at a glance
| Expiry weekday | Last Tuesday for NSE (Nifty, Bank Nifty, FinNifty), last Thursday for BSE/Sensex — current convention (Sept 2025), verify on exchange |
|---|---|
| Only expiry for | Bank Nifty and FinNifty (no weekly since Nov 2024) |
| Time value | More than weekly — decays gently until final week |
| Example premium | Nifty 25,000 monthly CE ~₹350 vs ₹110 weekly (illustrative) |
| Final week behaviour | Decay and gamma accelerate, similar to a weekly |
| Used for | Rollovers, open-interest analysis, term structure reference |
Monthly Expiry in simple words
Monthly options are the 'standard' contracts that live for weeks and expire once a month. They carry more time value than weeklies, so they cost more but decay more gently. Every derivative — including those with no weekly option, like Bank Nifty and FinNifty — has a monthly contract, making the monthly expiry the most important scheduled event in the F&O calendar.
Why Monthly Expiry matters
Monthly contracts give traders a longer runway for a view to play out and are the reference expiry for rollovers, open-interest analysis and the futures term structure. They are the backbone of positional and hedging strategies.
Monthly Expiry: visual explanation
The monthly contract expires once a month on the last expiry weekday; weeklies expire in between.
Monthly Expiry: professional explanation
When the monthly expiry falls
The monthly contract expires on the last expiry weekday of the month. Under current rules that is the last Tuesday of the month for all NSE derivatives (Nifty, Bank Nifty, FinNifty, Nifty Midcap Select and stocks) and the last Thursday for BSE's Sensex. Because Bank Nifty and FinNifty no longer have weeklies, their monthly expiry is the only expiry they have.
How monthlies differ from weeklies
A monthly option holds more time value, so its theta per day is lower early in its life and only accelerates in the final week. Its gamma is more moderate until close to expiry. This makes monthlies steadier to hold and the natural choice for positions that need room to develop, while the last week of a monthly behaves much like a weekly.
Rollover and the monthly cycle
As a monthly contract nears expiry, traders holding futures or positional options 'roll over' — closing the expiring contract and opening the next month's — to maintain exposure. Rollover activity, measured as a percentage, is watched as a sentiment and positioning signal around the monthly expiry.
Monthly Expiry in practice (Nifty / Bank Nifty)
Illustrative — Nifty spot 25,000, lot size 65
With Nifty at 25,000 early in the month, the monthly 25,000 CE might trade around ₹350 — far more than the ₹110 weekly, because it packs roughly a month of time value. If the market stays flat for a week, that monthly might slip to ₹280 (a gentle decay), whereas the weekly over the same week could lose more than half its value.
Bank Nifty, which lost its weekly option in November 2024, trades only the monthly contract expiring on the last Tuesday of the month — so a Bank Nifty positional trader must think in monthly terms, with no weekly alternative for short-dated hedging.
Advantages of Monthly Expiry
- More time value and gentler early decay — easier to hold through short-term noise.
- Available on every derivative, including Bank Nifty and FinNifty which have no weekly.
- The reference expiry for rollovers, term-structure and open-interest analysis.
Limitations of Monthly Expiry
- Costs more than a weekly for the same strike, because of the extra time value.
- The final week of a monthly still behaves like a weekly, with fast decay and rising gamma.
- Less precise for hedging a single near-term event than a short weekly.
Why Monthly Expiry matters in practice
- Use monthlies when your view needs weeks, not days, to develop.
- Watch rollover activity around the monthly expiry as a positioning signal.
- Remember that Bank Nifty and FinNifty are monthly-only — plan hedges accordingly.
- Treat the last week of a monthly with the same caution as a weekly.
Common misconceptions about Monthly Expiry
Misconception: A monthly option decays at the same slow rate for its whole life.
Reality: No. Their theta is modest early on but accelerates in the final week, when a monthly starts to behave much like a weekly with fast decay and rising gamma.
Common mistakes with Monthly Expiry
- Paying for a month of time value when your view is only a few days long (a weekly may fit better).
- Assuming a monthly decays slowly all the way to expiry — its final week accelerates sharply.
- Forgetting that the monthly is the only expiry for Bank Nifty and FinNifty.
- Ignoring rollover costs when extending a futures position to the next month.
How professionals treat Monthly Expiry
Professionals treat the monthly expiry as the anchor of the derivatives calendar. They monitor rollover percentages for positioning clues, manage the term structure between the current and next month, and recognise that the last week of the monthly demands the same gamma discipline as any short-dated contract.
Monthly Expiry: frequently asked questions
Which day is the monthly expiry in India?
Currently the last Tuesday of the month for NSE derivatives (Nifty, Bank Nifty, FinNifty) and the last Thursday for BSE's Sensex. Verify the current weekday with the exchange, as it has changed.
How is monthly expiry different from weekly expiry?
Monthly options live for weeks and hold more time value, decaying gently until the final week; weekly options live for days, are cheaper, and decay much faster. Monthlies suit longer views.
Does Bank Nifty have monthly expiry?
Yes — and only monthly (plus quarterly). Bank Nifty weekly options were discontinued in November 2024, so its monthly contract, expiring on the last Tuesday, is its sole expiry.
Why do monthly options cost more than weekly options?
Because they carry more time value. With weeks rather than days until expiry, there is more time for the underlying to move, which makes the extrinsic part of the premium larger.
When does the current monthly contract stop trading?
On its expiry day — the last expiry weekday of the month — at the normal market close. After that it is settled and the next month becomes the near-month contract.
Is the monthly expiry more important than weekly?
It is the reference expiry for the market: rollovers, futures term structure and much open-interest analysis are built around it, and every instrument has one. Weeklies matter for short-term trading.
What happens to my monthly option if I hold it to expiry?
The same as any option: if in-the-money it is auto-exercised and settled (cash for index, delivery for stocks); if out-of-the-money it expires worthless.
Are monthly options better for hedging?
For multi-week protection, yes — a monthly covers a longer period. For a single near-term event, a shorter weekly (where available) can be cheaper and more precise.
Voice search questions about Monthly Expiry
Natural-language questions people ask about Monthly Expiry.
When is the monthly expiry this month?
Under current rules it is the last Tuesday of the month for NSE contracts and the last Thursday for the Sensex on BSE. Check the exchange calendar for the exact date.
Why is a monthly option more expensive than a weekly?
Because it has more time value — weeks of possible movement are priced in, versus only days for a weekly, so the premium is larger.
Does Bank Nifty only have monthly expiry now?
Yes. Since November 2024 Bank Nifty has monthly (and quarterly) expiry only, on the last Tuesday of the month — its weekly options were discontinued.
People also ask about Monthly Expiry
Questions best answered by their own dedicated pages:
Sources & references for Monthly Expiry
Published 10 July 2026. Educational content only — not investment advice. Exchange rules change; verify current conventions on NSE/BSE.