How Options Pricing Changes Near Expiry

How Options Pricing Changes Near Expiry

You might have observed that the option prices suddenly change near expiry. Many beginners don’t understand it, and they get shocked when the option they bought loses value rapidly, even when the underlying asset doesn’t change much. This is due to the behaviour of options pricing changes near expiry. If you are an option trader, it is very important to understand how option premiums change during the final days or last few hours. This will help…