InvestorQ : Can you tell me about the changes to the weekly options contracts of the various indices?
Mahima Roy made post

Can you tell me about the changes to the weekly options contracts of the various indices?

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3 weeks ago
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In a recent circular, the NSE announced changes to the settlement cycles of weekly options contracts on 3 out of the four key indices permitted to trade in weekly options via indices. Currently, NSE offers weekly F&O contracts trading on 4 indices viz. Nifty 50 index, Bank Nifty index, Nifty Financial Services index and Nifty Mid-Cap 50 index. The changes will be applicable to Nifty 50 index, Nifty Financial Services index and Nifty Mid-Cap 50 index

As per the circular, the availability of weekly expiry options contracts on NIFTY index shall be reduced from 7 weekly expiration contracts to 4 consecutive weekly expiration contracts for the above 3 indices as mentioned in the previous paragraph. This change would be effective from 09th December 2022. This excludes the monthly expiry contracts.

Here is the process flow for the change.

a) All existing weekly expiries of index contracts will continue to be available till their respective expiry dates or their maturity dates. There will be no changes till then.

b) However, no new weekly expiries (excluding monthly expiry) will be introduced by the exchange on the 3 indices between December 09th, 2022 and January 05th, 2023.

c) With effect from January 06th 2023 onwards, there shall be only 4 consecutive weekly expiries available, excluding the monthly expiries available for trading. Everything else about these contracts will remain the same.

These changes have already been effected for Bank Nifty contracts.

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