When to Exit an Options Trade Before Expiry
Options Trade Exit Timing is something every serious Indian trader and investor should understand clearly. Part of our Options Trading in India: The Complete Guide series.
Focused Topic
Practical Takeaways
Pillar Series
Holding an option until expiry is rarely the optimal choice — knowing when to exit early often protects gains and limits unnecessary decay.
When Your Target Is Reached
If the underlying reaches your planned target well before expiry, booking profit rather than holding for a theoretical bit more upside avoids giving back gains to time decay.
When Time Decay Accelerates
Decay accelerates sharply in the final days before expiry — a position that hasn’t worked by then often makes more sense to close than to hold on hope.
When the Original Thesis Breaks
If the reason you entered the trade no longer holds — a support level fails, a trend reverses — exiting early based on invalidated logic is usually better than waiting for expiry to decide for you.
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