Zero-Hero Trades: Explained
The retail trader's obsession. Buying cheap options (₹10-20) on Expiry Day hoping they become ₹100.
Note: Since Nov 2024, Weekly Expiry is available ONLY on Nifty 50 (Tuesdays).
BankNifty Zero-Hero is now a monthly event.
The Probability
When does it work?
It requires a Short Covering Rally.
When big option sellers are trapped, they cover their positions, causing a massive spike in premiums.
The 1:30 PM Rule
Usually, big moves happen after 1:30 PM on expiry.
Check the Open Interest Change chart. If Call Writers are exiting (Negative bars), buy the
Call.
Money Management
Treat it as a lottery ticket. Use only profits earned during the week. Never use your core capital for Zero-Hero.
*Disclaimer: NSE/BSE frequently revise Lot Sizes and Expiry Days (e.g., SEBI Circulars 2024/2025). Always check the latest circular on nseindia.com before trading.
Standard Disclosure: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. The content provided here is for educational purposes only and does not constitute financial or investment advice. AlgoStraddle Academy is not a SEBI registered investment advisor. Trading options involves high risk and capital can be lost.