Comment on STT Trap - Options Expiry - NSE BSE MCX-SX

Gaurav Kesri commented on 25 Oct 2016, 03:26 PM

Hi Team,

I have bought 10 lots of 7500PE for Oct 2016 expiry @1.10 = (10*75*1.1)= Rs. 825
Since, the price was falling and to average the same out I bought another 20 lots @0.5=Rs. 750
Now my average Buy Price has become Rs. 0.7.
Assume, the premium for 7500 PE is currently trading @ 0.6.

Questions: What would happen if on the day of expiry the premium is trading at Rs 0.6 – and I didnt square the position off?

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