Options Trading is flexible, and different people have different ways of trading Options. While some prefer a single-legged directional strategy, others prefer Straddle or Strangle. One Options Strategy that is exceptionally popular among Options Buyers in India is the “Zero to Hero” strategy, and it’s usually implemented on the expiry day (Thursday).
To implement this strategy, you will first need to wait for the prices of the contracts to settle down a bit, which happens by 1 pm. Next, you will need to buy a contract with a directional view to capture a big movement against time decay. In this post, we will discuss the best 5 Options Trading Platform That Allows To Buy Call Options On Expiry Date.
Zerodha has been a reliable broker since 2010, which allows users to buy Call Options on the expiry day. However, you must try to avoid OTM contracts and get an ATM contract only to beat time decay on the expiry day. You can open an account with Zerodha for ₹200, and it’s essential to bear in mind that the platform charges you an AMC of ₹300. Regarding brokerage, the platform charges a flat ₹20 per executed order for Options.
Launched in 2009, Upstox is another excellent platform for Options Trading, and you can buy Call Options on this platform on the expiry day. However, your expiry day trading can be really risky. Hence, you must do a proper technical analysis before entering a position. Interestingly, Upstox allows you to open an account for free, and further, the platform has the lowest AMC in the industry, with only ₹150 per year. When it comes to brokerage, Upstox charges ₹20 or 0.05% (whichever is lower) per order on Options. The best part is the platform comes with readymade Options Trading Strategies.
If you are into expiry-day Options Trading, you may consider Paytm Money. The platform was founded in 2017 and is a SEBI-registered broker. You can buy Call Options on the expiry day on Paytm Money. However, try to avoid OTM contracts as much as you can. Besides, it’s always wise to keep your lot size small to avoid heavy losses. Opening an account with Paytm Money will cost you ₹200, and besides, it’s important to remember that the broker charges an Annual Platform fee of ₹300 every year. Brokerage charges on Options Trading in Paytm Money is ₹15.
Launched in 2021, Dhan is one of those discount brokers that comes with dedicated Options Trading features. Dhan Options Trader App is an ideal trading app for Options traders. You can buy Call Options on the Expiry Date. However, to be on the safer side, try to take a position after a good pullback with a small stop loss. Dhan allows you to open an account for free; further, there is no AMC. The broker charges ₹20 per executed order for Options Trading.
Founded in 2015, Fyers is another trustworthy trading platform that allows you to buy Call Options on the expiry day. It’s worth mentioning that Fyers’ interface offers fast order placement and management without leaving the chart. You can open an account with Fyers for ₹0 charges. Besides, Fyers doesn’t charge any AMC. As far as brokerage charges go, the platform charges ₹20 per executed order on all segment Options.
Things to Look for, While Choosing an Options Trading App
Here are the essential features to look for while choosing an Options trading app:
- Easy to use and fast interface
- Quick order placement
- Tradingview charting tool
- Option chain for technical analysis
- Quick customer support
Almost all beginners in Options Trading start with expiry day Options trading, and despite being risky, the strategy pays off really well sometimes if done wisely. However, the most essential thing in this regard is the choice of trading platforms. I have walked you through the five best Options Trading platforms that allow you to buy Call Options on the expiry day. You can compare them and pick the best broker for your trading requirements.
FAQs Trading Platform That Allows To Buy Call Options On Expiry Date
Can I buy options on the expiry day?
You can certainly buy options on the expiry day, as most discount brokers allow you to do so. However, it’s important to understand that expiry day Options trading can be very risky since, as a buyer; you will have to be accurate with your direction and, at the same time, fight against time decay. For the same reason, you must only buy ATM contracts and enter a position after a proper technical analysis. Besides, it’s wise to keep your lot size small.
Does Upstox allow deep OTM options?
Upstox doesn’t allow you to buy Options contracts that are 30% more or less than their last traded price (LTP). and this is done as a part of their risk management policies. Hence, if you are an Upstox user, you must place orders keeping this in mind.
Why do people buy options on expiry days?
Buying options on expiry days is one of the most popular methods of trading Options in India. Many traders prefer it since prices of the contracts fall drastically by 1 pm due to time decay. That way, even ATM and ITM contracts become more affordable. Besides, if one does a proper technical analysis and gets the direction of the price right, one can capture a huge one-sided movement.
What is 5paisa and how does it work?
5paisa is a brokerage firm that offers online trading services, including equity delivery, intraday trading, currency options, and more. However, it's important to bear in mind that you will need to pay account opening charges to open an account with 5paisa.
What are the benefits of using 5paisa's trading platform?
5paisa provides a user-friendly trading platform for easy online trading in the Indian stock market, offering features like technical analysis, equity options, and real-time market data.
Can I open a trading account with 5paisa?
Yes, you can open a trading account with 5paisa to start trading in various segments such as stocks, mutual funds, currency futures, and more.
Is 5paisa suitable for beginners?
Yes, 5paisa offers a “Power Investor Pack” designed for smart investors, including beginners, which provides research tools and insights to make informed decisions.
What is the “Ultra Trader Pack” offered by 5paisa?
The “Ultra Trader Pack” is a service provided by 5paisa that caters to active traders, offering features like low brokerage charges and advanced trading tools.
Can I trade mutual funds on the 5paisa trading account?
Yes, 5paisa allows you to invest in mutual funds through their platform, providing access to a range of mutual fund schemes.
Does 5paisa offer mobile trading apps?
Yes, 5paisa offers a mobile trading app for trading on-the-go, allowing you to manage your portfolio and execute trades from your mobile device.
How can I get started with technical analysis on 5paisa?
5paisa's trading platform provides tools for technical analysis, helping you analyze price patterns and trends to make informed trading decisions.
Is 5paisa registered with the National Stock Exchange (NSE)?
Yes, the stock broker is registered with NSE, enabling you to trade stocks listed on the National Stock Exchange.
What is a discount broker, and how is 5paisa related to it?
A discount broker offers trading services at a lower cost compared to traditional brokers. 5paisa is a discount broker known for its competitive brokerage charges.
Can I trade currency futures with 5paisa?
Yes, 5paisa allows you to trade currency futures, which are contracts that involve buying or selling a specific currency at a predetermined price on a future date.
What is a depository participant in the context of 5paisa?
A depository participant is an intermediary through which investors can hold and trade securities in electronic form through the demat account.
How can I invest in mutual funds through 5paisa?
5paisa provides access to a wide range of mutual fund investment options, allowing you to research, select, and invest in funds that align with your financial goals.
Are there any transaction charges associated with trading on 5paisa?
Yes, you have to pay a brokerage charge on every trade. Besides, there are transaction charges applicable to various types of trades on the 5paisa trading platform. It's advisable to review the fee structure for accurate information.