Weekly vs Monthly Expiry Options: Updated Indian Market Guide

Weekly and Monthly Expiry: The Difference

Weekly and monthly expiry describe different contract listing cycles. For Nifty, weekly expiry is Tuesday and monthly expiry is the last Tuesday, with a holiday moving expiry to the preceding trading day. Compare the actual time remaining: a monthly contract close to expiry can be short-dated too.

NSE changed the relevant expiry weekday through circular NSE/FAOP/68747 of 25 June 2025, including transition rules for September 2025 contracts. Those transition details matter for historical data. Current Nifty specifications were checked on 16 October 2026.

Acting on an outdated schedule can leave a position open for a different period than intended. NSE moves expiry to the preceding trading day if the scheduled day is a trading holiday.

Which NSE weekly contracts were discontinued

NSE/FAOP/64506, dated 10 October 2024, retained weekly options on Nifty and discontinued them on Bank Nifty, Midcap Select and FinNifty. It gives a different final weekly date for each discontinued index.

The last weekly Bank Nifty expiry was 13 November 2024; Midcap Select was 18 November and FinNifty 19 November. Removing weeklies did not remove the longer cycles: Bank Nifty still has monthly and quarterly options.

• Nifty remains the NSE weekly index-option product.
• Bank Nifty weekly options were discontinued; monthly and quarterly contracts remain.
• FinNifty and Midcap Select have no weekly contracts under the cited notice.
• Verify current quantity and expiry in the contract file.

Which instruments still have weekly options

The distinction is contract availability, not a ban on intraday Bank Nifty trading. A monthly or quarterly Bank Nifty contract can still be traded before its expiry. NSE stock options use monthly contracts.

Weekly vs monthly: how the mechanics actually differ

Weekly and monthly describe listing cycles, not fixed lifetimes. Either can be close to expiry when traded. NSE index options are cash settled; the final settlement value determines intrinsic payoff. For Nifty, the product overview’s physical-settlement description conflicts with the clearing page’s cash-exercise treatment; the latter supports the cash payoff used below.

Time decay is sensitivity to elapsed time with other inputs held constant. It is not a fixed payment to sellers or a predictable daily loss to buyers. Underlying movement and implied volatility can outweigh it.

Longer-dated options often have more time value and volatility sensitivity when other features are comparable. Compare the actual contracts rather than assuming a monthly option is always more expensive or safer.

A worked example: buying a Nifty weekly call

Illustrative Nifty weekly call: assume strike 24,100, premium ₹80 and total quantity 65 units. The quantity is assumed, not a quoted live lot. Suppose final settlement is 24,300.

Premium paid is 80 × 65 = ₹5,200. Intrinsic value is 24,300 − 24,100 = 200 per unit, giving ₹13,000 of settlement value.

Gross expiry profit is ₹13,000 − ₹5,200 = ₹7,800. At the exercise STT rate of 0.15%, effective 1 April 2026, example STT is ₹19.50 before statement rounding. Other charges still apply, so this is not a net-profit calculation.

A worked example: a monthly Bank Nifty hedge

Illustrative Bank Nifty monthly put: assume strike 50,000, premium ₹300 and total quantity 30 units. The quantity is an assumption, not a live lot quotation. A put tied to an index may only imperfectly hedge a different basket of stocks.

Example premium cost is 300 × 30 = ₹9,000. At an assumed final settlement of 48,500, intrinsic value is 1,500 per unit and settlement value ₹45,000. Gross option profit is ₹36,000 before costs. If settlement is at or above the strike, the put expires worthless. The stock basket’s separate gain or loss is not calculated here.

• Check whether the selected expiry covers the intended holding period.
• Compare the option with the exposure it is meant to hedge.
• Review adverse price and volatility changes as well as time decay.
• Treat option profit separately from the total hedged portfolio result.

Costs, STT and the expiry-day trap

From 1 April 2026, STT on options sold is 0.15% of premium and on bought options exercised is 0.15% of intrinsic value. Equal rates on different bases do not mean exercise always costs more. Check the actual transaction and settlement obligations.

Brokerage and other statutory charges also matter. Verify the broker tariff and contract note rather than inserting a generic flat charge for every position.

• Apply the correct sale or exercise tax base.
• Count all charges when reviewing realised performance.
• Separate a planned exit price from the price actually executed.
• Keep transaction records for tax review.

Tax Records Across Different Expiries

The weekly or monthly label alone does not establish income-tax treatment. Retain buys, sales, settlements and charges for the relevant reporting period.

Ask a qualified chartered accountant about classification, deductions, losses and audit obligations. This expiry comparison does not verify individual tax eligibility.

Choosing weekly or monthly for your style

There is no universally superior expiry. Compare actual time remaining, liquidity, premiums and adverse scenarios. A shorter expiry can finish before a planned event or holding period.

A monthly contract can lose its full long-option premium too. A spread changes the payoff and settlement requirements; its suitability cannot be inferred from the expiry label.

• Read the actual expiry date.
• Check premium paid or received and total quantity.
• Model adverse outcomes and charges.
• Confirm settlement requirements and the ability to exit.

Related Reading

Read weekly-option mechanics, option premium and trading holidays for related context.

Sources

• NSE: Weekly index discontinuation (checked 16 Oct 2026)
• NSE: Expiry weekday transition (checked 16 Oct 2026)
• NSE: Bank Nifty cycles (checked 16 Oct 2026)
• NSE: Current Nifty specification (checked 16 Oct 2026)
• NSE: STT revision (checked 16 Oct 2026)
• Zerodha: STT bases (checked 16 Oct 2026)
• NSE Clearing: Index exercise settlement (checked 16 Oct 2026)
• Zerodha: Index cash and stock delivery settlement (checked 16 Oct 2026)