Option trading can be a lucrative venture, but it requires careful planning and strategy, especially when it comes to scheduling trades around the National Stock Exchange or NSE holidays. Holidays can affect the liquidity and volatility of the market, which in turn impacts option pricing and trade execution. Here’s a guide on how to effectively plan your option trading around these holidays.

Understand the Impact of Holidays on Option Trading

NSE holidays can significantly affect the market. On these days, trading is halted, which can lead to reduced liquidity before and after the holiday. Lower liquidity often results in wider bid-ask spreads, making it more expensive to enter or exit trades. Additionally, market sentiment can shift during these breaks, leading to increased volatility when the market reopens.

Plan Ahead with the Holiday Calendar

The first step in planning your option trading around NSE holidays is to be aware of the …