Comment on STT Trap - Options Expiry - NSE BSE MCX-SX
commented on
10 Mar 2017, 11:31 AM
If I sell an ITM option contract, the traded value closer to expiry will be less than the intrinsic value due to STT. In such a case, is it mandatory to square off the trade to gain on the STT? Can the option writer gain the value even if he lets the exchange do the settlement?