I feel this is done because, on the expiry day, the option premiums are just too volatile to offset the risk by buying an option expiring on a later date. Traders sell the options expiring the same day and to reduce the risk buy an option expiring in the next week or month. But the...
In other words, V is equivalent to the trading volume (number of contracts traded in a given period) or open interest (number of open option contracts) of the Nifty Futures contract. P is the day’s closing price of the index (DCP). T is the transaction i.e., total trading quantity...