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

Deena commented on 07 Jan 2017, 09:21 PM

Hello Sir,

I am new to Options Trading. I have just started to understand the concepts. I have learned about Covered Call and Put. Low risk trading strategy is to sell Put option at 400 points down the current value and Call option at 400 points above the current value and allow it to expire. And as per this blog of yours the STT will not be charged since for Buy Back there is no STT.

I have a fundamental doubt on what will happen to the Call options that are 400 points down the current value during the expiry date. For example today the current value is 8,243.80 and the 7800 CE is trading at 476.

If I sold a lot of 7800 CE today and wait till the Expiry date, will the option expire to Zero or the Last Traded Price?

My apologies if the question is too naive

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