Many people have been asking me about my view on weekly options and whether they are going away. I am as clueless as everybody else. 😃

Having said that, I would not be surprised if they were banned completely, and/or if there is some product suitability framework that makes it harder for people to trade F&O.

By the way, as I’ve said numerous times before, regulatory risk is by far the biggest risk for brokers like us. This risk is magnified even more because most brokers’ earnings are from traders, and they earn almost nothing from investors (like with us).

Check the image that shows the drop in exchange option volumes since weekly expiries were reduced to two. They are down by almost 40% in a bull market. Now imagine if the remaining two get removed. 😬 We’d be back to 2019 levels more or less.

We earn nothing from investors, either as brokerage or commissions from selling mutual funds. The more I think about it, we are just biding time before we will be forced to make a change.

What do I personally think about weekly option expiries? As the CEO of a brokerage firm, I would say weekly expiries with a product suitability framework sound reasonable to me. But if I were an outsider to the broking industry, I would understand the logic behind completely removing weekly expiries.

And for those who make the mistake of comparing us to the US and mention that we are the biggest derivative market, here’s my earlier post.

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