Comment on Theta

Patki commented on 09 May 2018, 07:59 PM

Dear Karthik,
Say I have sold OTM Strike price Bank Nifty and its value becomes zero on expiry and remains OTM. Before it expires shall I have to buy the contract to complete the transaction or allow it to lapse at zero. What about the brokerage and tax and will the profit b credited to my a/c even though I allowed it to expire? Pl. Clarify

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