Yes, premium deterioration on expiry day can happen very fast, specially last hours. That's why also many traders trade with next week option options on Thurs day. I do that too. Even from Weds day, next week options start gaining trading volumes/liquidity. On Thurs day liquidity is no problem on next week options.
1. You can also think of shifting the leverage to next week option on Thurs day(exp day) and no leverage on the current week contract.
2. You can also think, cut off leverage timing 2pm/2:30pm on Thurs day on current week options which are about to expired.
3. Another easiest way to start with.. stop giving leverage on exp day, still 4 days left per week.
Something is always better than nothing. Just like traders Risk Measurement is a must for brokers and innovative ideas always help....
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For options traders, leverage on writing (selling first) makes more sense. As premium is very low for buying not many traders need leverage for buying options(rather they want place stop loss and target inside the system as quickly as possible using the BO-CO, not the leverage). Also giving leverage on the sell side(intraday) is less risky as still margin blocked per lot is much more compared to capital used using prem buying. As generally margin blocked for OPTIONS SELLING FIRST is huge, presently many brokers considering good intraday leverage there.
For example, selling Rs 150 priced weekly option with 100 pt stop loss and another 200 pt if, u take for slippage in worst case on most liquid contract. Still, 300 pt on 40 units per lot is max Rs 12000. Whereas selling an option first even on intraday requires about 25,000-30000 margin which seems illogical.
Some brokers already allowed Rs 12000-15000 to sell bank nifty options intraday. Risk management varies from brokers to brokers still it is evident that there are lots of space to reduce intraday option selling margin within the good risk management system.