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

Amit Nanda commented on 13 Feb 2017, 09:57 AM

If I short out of money option and it remains out of money till expiry and if I do not cover the position till the end:

1. The option would expire worthless (exactly 0) and not at 0.05 (or the minimum tick level).
2. There will not be any extra STT applied in this case.
3. There will not be any brokerage on the second part of the trade, that is, covering the position.
4. The above 3 points will hold true even if I buy and out of money option and let it expire out of money.

Please confirm if my understanding in all the above 4 points is correct.

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