Should SEBI Remove Weekly Expiries? A Deep-Dive With Traders, Prop Desks, Brokers & Sub-BrokersThis isn’t just a rule tweak.
It’s a full ecosystem reset.In this group podcast, we brought together voices from every corner of the options market-profitable option buyers and sellers, prop-desk traders, brokers, and sub-brokers-to explore one question with brutal honesty: If SEBI removes weekly expiries altogether, does it actually solve the problem it’s trying to solve… or does it create a different set of problems for everyone else?
No drama.
No echo-chamber.
Just practitioners talking numbers, execution, liquidity, and risk—jo roz market chalate hain aur impact sabse pehle unhi par aata hai.Why Weekly Expiries Matter (and what disappears if they’re gone)Weekly options aren’t just about “more contracts to trade.”
They sit at the intersection of liquidity, price discovery, and risk management.
They compress time, and compress time means faster theta and tighter spreads when there’s enough participation.
“Theta decay means the value of an option keeps reducing every day as time passes — even if the stock/security price doesn’t move. Basically, time itself eats away at the option’s price.
”This faster time decay is the backbone of countless income-style strategies on the sell side, and the “event window” playground for the buy side. When weekly contracts are active, the market has continuous micro-cycles for hedging, adjusting, and discovering price around news flows.
“Right now weekly expiries attract huge trading volumes — lots of buyers and sellers on both sides. That keeps the bid-ask spread tight.
If SEBI removes weeklies, volumes will shift into fewer contracts like monthly ones.
Fewer traders = thinner liquidity = wider bid-ask spreads.
In simple words: less traffic on the road, harder to find the exact buyer or seller, so the price gap between buy and sell increases.”
Wider spreads aren’t just an irritation. They’re a direct cost to both sides—buyers pay more, sellers receive less, fills slip, slippage grows, and edge shrinks.
Direct Impact on Option Traders: Sellers, Buyers, and the Real Cost of SlippageMost systematic option sellers today build edges around repeatable, short-dated premium capture.
Buyers use them for quick, low-cost bets and to experiment with strategies around news or events.
If weeklies go away, they’re left with monthly options which are costlier, carry higher premiums, and have more time value built in.
That means bigger upfront cost, harder to experiment, and more uncertainty - because you’re stuck holding time value risk for longer.”Net-net: fewer entries, higher friction, more capital tied up, and more “waiting risk.”
The market gets less iterative and more sluggish.Strategy Rebuilds: Time, Backtesting, and the Reality of Lost EdgeEdge isn’t a button. It’s built. It’s measured in backtests, scars, and iterations.
Changing the settlement calendar forces a wholesale rebuild of assumptions: decay curves, carry, gap risks, roll logic, hedging triggers, and even psychology.“Every time a trader changes strategy, profits become uncertain.
Why?
Because the new approach needs fresh backtesting, the risk–reward balance may be different, and it takes time to learn and execute properly. Plus, no strategy guarantees the same result twice — what worked in the past may not work this time. So shifting strategies always adds a layer of risk before consistent profits can come.”
Weekly expiries fuel high-velocity activity without always increasing systemic leverage. Removing them can push the business mix into slower cycles, lower realized churn, and compressed revenues.For smaller brokers and sub-brokers who depend on intraday retail flow, the impact is sharper. Lower day-to-day spread of business means higher earnings volatility, possible consolidation pressure, and a rethink of service models (education vs. execution, research integrations, CRM intensity, etc.).
Plus, there are so many other factors that cannot be overlooked and have been discussed in depth in this detailed video.
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0:00 - Trailer
0:50 - Whats going on with Weekly Expiry Removal?
3:25 - Direct Impact on Option Traders?
5:19 - Impact on Prop Desk Traders
10:09 - Efforts on Rebuilding Strategies
13:14 - Impact on Profit Margins
17:55 - Profitable Traders are Minority?
19:00 - Rules & Losses Correlation
24:50 - Is SEBI focusing on the REAL problem?
31:30 - Retail Confidence on SEBI
34:32 - Movement towards Crypto for Rules
38:32 - Impact on Broker Business
39:22 - Conclusion
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