When Nifty breaks an important level:Buyers rush inWriters exitTrend becomes powerfulThis is the most common reason for premium explosion.✔️ 4. Expiry Week BehaviorNear expiry:Premiums fall fasterBut also rise fasterMarkets become unpredictableA ₹90 option can become ₹220 in seconds during expiry week.
✅ PART 3 — Mid-Section Deep Explanation (English + Urdu) --- ⭐ ENGLISH SECTION — PART 3 --- SECTION 7 — Why Option Premiums Explode Suddenly A move from ₹90 → ₹220 is rarely slow. Option premiums usually explode because of: ✔️ 1. Short Covering When option writers panic, they exit positions. This creates: Massive buying pressure A chain reaction Rapid price movement ✔️ 2. Sudden Increase in Volatility (IV Spike) When India VIX rises: Premiums expand Market becomes sensitive Options become more expensive Even without a big move in Nifty, premiums can shoot up. ✔️ 3. Strong Market Breakout When Nifty breaks an important level: Buyers rush in Writers exit Trend becomes powerful This is the most common reason for premium explosion. ✔️ 4. Expiry Week Behavior Near expiry: Premiums fall faster But also rise faster Markets become unpredictable A ₹90 option can become ₹220 in seconds during expiry week. --- SECTION 8 — Why ₹220 Is a Logical Target (Not Random) Many traders think ta...