Comment on Basics on Options Shorting/Writing

Varun commented on 03 Feb 2017, 04:21 AM

Hi Sir,

I paid big exercise brokerage for BankNifty index options. 100 lots (40 X 100 = 4000)
I did not square off the position during expiry day. I thought my position was in ITM, so exchange will settle with exercise.

I bought 21000 banknifty option put and spot price closed is 20070.30 during expiry day

the exercise brokerage (STT) was charged above 1 lakh.

It seems totally meaning less. sometime index closes very close to strike price like .5 point or 1 point less. If someone is not squaring of their position, to settle that .5 paise or 1 rupees, exchange charges big brokerage. This is totally ridiculous. i do not see any value for settling small exercised amount, they charge big exercise brokerage.

i am helpless here. Is there any way to get back my exercise brokerage paid.

Please help me on this.


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