What is Expiration?

Indian market context (NSE)

Reference levels: Nifty 50 at 24,300, Reliance Industries at ₹1,300, Bank Nifty futures at 55,000 (lot size 30). Examples below show how Expiration shows up on Indian index, equity, and futures books — update to live quotes in your journal.

Nifty 50 perspective

Nifty at 24,300: weekly/monthly option chains centre on round strikes (24,000 / 24,500). Expiration on ATM Nifty options shifts quickly into expiry — India VIX and event risk (RBI, budget) reprice premiums independent of spot.

Reliance Industries perspective

Reliance at ₹1,300: stock options are American-style on NSE with liquidity concentrated near ATM strikes. Expiration behaviour on ₹1,300 handle differs from index options — watch assignment on short ITM legs before expiry.

Bank Nifty futures perspective

Bank Nifty futures at 55,000: hedging with options or trading expiration on Bank Nifty weekly contracts — theta and gamma rise sharply into Thursday expiry; futures leg has no time decay but carries overnight gap risk.

How to validate

• Minimum sample: 30 closed trades on one strategy tag before trusting Expiration.
• Check for one outlier week inflating Expiration — export largest winners and losers.
• Recompute Expiration after including brokerage, STT, and slippage on F&O tags.
• Compare Expiration on the same date range as profit factor and max drawdown.

How to track in TradeLyser

• Open Strategy Board or analytics → filter by strategy tag and review period.
• Locate the widget or column reporting Expiration (or export trades to compute manually).
• Store snapshot values in weekly review: Expiration, profit factor, drawdown, trade count.
• If Expiration is custom, add a spreadsheet column fed from TradeLyser CSV export.

Best practices

• Publish Expiration per strategy, not only at account level.
• Use the same calculation window (weekly vs monthly) year-round.
• Pair Expiration with sample size in every review slide or note.
• Document formula used so mentors interpret the same number.

Common pitfalls

• Changing rules after fewer than 20 trades because Expiration moved slightly.
• Mixing intraday and positional tags when computing Expiration.
• Ignoring costs so Expiration looks better than banked P&L.
• Letting one outlier trade dominate the Expiration reading.

How to use this in TradeLyser

Calendar all open options with expiry; reduce size into expiry week if plan requires.