How To Trade Safely During Closing Auction Volatility | Chandan Explains

The new Closing Auction Session (CAS) has introduced significant volatility in Nifty weekly expiry trading, leaving many option writers facing unexpected risks. In this segment, Chandan explains why these sharp price spikes are happening, how the CAS mechanism works, and why low liquidity is creating a "chicken-and-egg" situation in the market.

He also shares practical advice for option traders, including why exiting positions before 2:45 PM may be prudent, how to manage strike selection, and what option buyers can expect until liquidity improves.

Key Topics Covered:

What is the Closing Auction Session (CAS)?
Why option writers are getting caught in expiry-day volatility.
How the CAS price discovery mechanism works.
The impact of low liquidity on closing prices.
Risk management tips for option writers.
Will CAS volatility reduce over time?
The future of expiry-day trading under the new system.

#Nifty #OptionsTrading #OptionSelling #CAS #ClosingAuction #NSE #StockMarket #ExpiryDay #Nifty50 #BankNifty #TradingStrategy #Derivatives #MarketVolatility #IndianStockMarket #ChandanTaparia


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