The National Stock Exchange recorded a historic 6.51 crore options contracts traded on the May monthly expiry day, surpassing the previous record of 5.92 crore contracts. Total notional value of options traded crossed Rs 800 lakh crore, highlighting the explosive growth of India's derivatives market which is now the world's largest by number of contracts traded.
The record turnover was driven by heavy retail participation in weekly options, particularly Nifty and Bank Nifty contracts. Zero-day-to-expiry options — commonly known as 0DTE options — accounted for 42% of total index options volume as traders sought leveraged positions on expiry day price movements. The surge in activity has raised regulatory scrutiny about systemic risks.
SEBI had already introduced measures to limit weekly expiries to one per exchange per index, and the regulator is reportedly considering additional curbs on 0DTE trading. Market microstructure analysts note that while high volumes indicate market depth and liquidity, the concentration of retail losses in F&O — with 89% of traders losing money — remains a significant concern for investor protection going forward.
