When analyzing options data, it's important to choose the right expiry to get reliable insights. For weekly expiries, data tends to become meaningful only a few days before expiry (like expiry -2 or -1 day). Therefore, if the current date is just four days before the weekly expiry, it's often too late to rely on that data, as it might not reflect genuine market sentiment—especially due to low participation or sudden adjustments.

For example, if the weekly expiry is on 9-Apr-2025 and the current date is 4-Apr-2025, there are only 4 trading days left. The options data for that expiry is still being built and may not offer a clear or reliable picture of market direction.

In such cases, it's more effective to switch to the monthly expiry, which generally has higher liquidity, more stable data, and broader participation. Using the monthly expiry helps in drawing better conclusions about market strength, volatility, or trend.

Why Is This Useful?

Helps assess market positioning (hedged vs unhedged, bullish vs bearish)
Useful for understanding dealer gamma risk, volatility behavior, or potential pinning near expiry
Key input in options strategy risk management

Delta Exposure Impact on Market Trend

Delta exposure plays a crucial role in understanding the market's directional bias. It helps traders assess the overall risk and positioning of options traders in the market. Here’s how delta exposure impacts market trends:

1. What is Delta Exposure?

Delta exposure measures how much an option’s price moves relative to changes in the underlying asset. It is the net effect of long and short positions in both call and put options.

Call Delta (Positive Exposure) → Represents bullish sentiment.
Put Delta (Negative Exposure) → Represents bearish sentiment.
Net Delta → Sum of all delta positions (Call Delta + Put Delta).
Put/Call (P/C) Delta Ratio → Measures bearish vs. bullish sentiment.

2. How Delta Exposure Affects Market Trends

Delta Exposure	Market Impact
High Positive Net Delta	Indicates bullish sentiment. Market likely to rise.
High Negative Net Delta	Suggests bearish sentiment. Market likely to fall.
Neutral Delta (Close to Zero)	Market is balanced, limited directional bias.
Increasing Put Delta	Traders are buying more puts, expecting a decline.
Increasing Call Delta	Traders are buying more calls, anticipating a rise.

3. Practical Example

Let's analyze how delta exposure affects the market:

Date	Call Delta	Put Delta	Net Delta	P/C Delta Ratio	Bullish/Bearish Bias
2023-11-10	2.7M	-6.3M	-3.6M	2.34	Bearish
2023-11-09	1.4M	-1.3M	120.9K	0.91	Bullish
2023-11-08	430K	-964K	-534K	2.24	Bearish
2023-11-07	2.4M	-1.1M	1.2M	0.48	Bullish
2023-11-06	552K	-1.1M	-560K	2.02	Bearish

4. How to Interpret This?

On Nov 7, Net Delta is positive (1.2M) → Bullish Market.
On Nov 10, Net Delta is negative (-3.6M) → Bearish Market.
P/C Delta Ratio > 1 → More puts than calls = Bearish.
P/C Delta Ratio < 1 → More calls than puts = Bullish.

5. Which One is Best?

📌 For Intraday & Short-Term Trading → Use Per Expiry

📌 For Swing & Portfolio Management → Use Monthly Expiry

📌 For Comprehensive Risk Management → Track Both

🔹 Pro Tip: Some traders use a hybrid approach:

Track per expiry delta for immediate risk management.
Analyze monthly expiry delta to understand market positioning.

OPTIONS

Open Interest

FII / DII / Pro / Retail