It can, if the index rises far enough by the close. Time decay is the value an option loses as time passes. On Thursday a NIFTY weekly option has 3 trading days left. Take an at-the-money call, whose strike is closest to the index. If nothing moves, it loses about 8% of its price that day. The call's gain from a slow rise has to beat that loss. That takes about 28 points by the close.
- Index
- NIFTY
- Cycle
- NIFTY weekly
- Starts
- 09:15 IST
- Runs for
- 1 trading day · About 20 min at Normal speed
- Difficulty
- Beginner
- Date
- 4 Jun 2026
- Expiry
- NIFTY 9 Jun 2026
- IV
- 13.5%
What is this market shaped like?
The market starts on the Thursday of a NIFTY week. Expiry is 3 trading days away: Friday, Monday and Tuesday. In the Trending version the index drifts one way all day. Drift means a slow, steady move. The Thursday to expiry version runs on to the Tuesday close. IV (implied volatility) is the size of move option prices expect. The example below keeps it at 13.5%.
A Thursday for an at-the-money call, with NIFTY at 25,400 and IV at 13.5%
| What | Amount |
|---|---|
| Call premium at the open | about ₹178 |
| Premium at the close if nothing moves | about ₹164 |
| Rise NIFTY needs by the close to get back to ₹178 | about 28 points (0.11%) |
| How much the call moves for each point NIFTY moves | about ₹0.53 |
So a rise of 28 points only breaks even. A bigger rise wins. A smaller rise, or a fall, loses.
What will you see?
- Delta is how much an option moves for each point the index moves. Near the money it is about 0.5.
- Theta, the value lost to time, is taken all day, whatever the index does. The index move either pays for it or adds to the loss.
- IV has no planned change here. If IV slips lower, the call loses a little more.
Which version do you want?
Each version is the same kind of market with 1 thing changed. Choose one to start it.
- Thursday to expiry
- Thursday only · Trending
What should you try?
Try this with 1 lot of 1 call. A lot is the smallest size you can trade.
- At the open, buy 1 lot of the at-the-money call.
- Every hour, note NIFTY's level and the call's price.
- At the close, note NIFTY's level and the call's price. Compare them with the levels you wrote down each hour.
What should you check afterwards?
- Did NIFTY rise more or less than the move your call needed?
- Look at your hourly notes. Did the call's price fall in any hour when NIFTY did not fall?
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