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

San commented on 28 Dec 2016, 04:37 PM

Dear Zerodha,

I bought M&M Finance 270 PE Dec 29th Expiry at 10.35 rs premium. I am bit worried and want to know

1. What if there are no buyers say when the underlying price of the stock is trading at 250 rs. If I don’t sell or can’t sell because there are no buyers ? Will zerodha exercise it on my behalf with some commission ? Please explain.

2. I understand if the underlying stock is trading above 259.65 ( 270- 10.35 ) and if I don’t exercise my option, then do I lost my entire premium ?

Thank you,

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