Specially on the trades that I take on expiry day where option prices move 10 times in last one hour. Let me tell you that this happens only 1 in 3-4 weeks.
Few pointers that I look at.
So what I look for is following 3 things.
1. Open Interest Build Up on expiry day
2. Trend of the market from start of the day
3. how to trade
3. Time when breakout or breakdown of critical levels happen
Its very important to understand the trend of the market from start of the day. Its important to check if market is consolidating, trending and how was the opening gap up, gap down, flat. This will decide the force of the mo
1. the 2 strikes where max OI is concentrated Upper boundary and lower boundary
2. the general structure of trend on that day for the market
So we have 2 levels one on upside and one on downside. These boundaries once broken we will enter the trade by buying a call if upper boundary is taken out or by buying put if lower boundary is taken out(we buy same day expiry put or call).
1. Important to note that only 1 in 3 expires will give you a trading opportunity
2. Remember we are buying a lottery ticket so buy only of amount that you can afford to go to zero
3. Risk reward has to be min 1:4 higher the better.