100-Word Take | Weekly Nifty options - just what the broker ordered

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SEBI has NSE’s weekly options for the Nifty. The exchange says this is an additional hedging tool, but nothing can be farther from the truth.

For now, only Bank Nifty has weekly options. Between 55-60 percent of daily volume in all derivatives happens in these options.

Speculators like them because they offer good movement during short-term events like earnings, Budget or elections. Exposure to risk is for a short duration and traders churn their positions regularly, earnings more commissions for brokers.

Investors and fund managers say that they are unconcerned with short-term news and would prefer longer-duration options for hedging