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

Nithin Kamath commented on 25 Oct 2016, 06:54 PM

Gaurav, it is not sensible to buy such deep out of the money options. For 7500 PE Oct to make money, the nifty index has to drop below 7500 before expiry (2 days from now). If it doesn’t, the option will expire at 0.

Assuming Nifty does fall and options expire in the money, this will be considered as an exercised option. You will end up paying much higher STT as mentioned in the post above. So you should sell it in the market instead of letting it expire. Suggest you go go through the F&O module here:

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