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

Vijay commented on 25 May 2017, 03:44 PM

Dear Nithin,

I need your help with this matter.Yesterday i shorted Nifty17May9000PE at 1.50 and i was planning to let
the option expire worthless as i was sure Nifty was not going to close below 9000 by 1530 hrs today and just as
i expected Nifty did not close below that level and as you may know it went beyond 9500.

But here comes the issue,the broker with whom i have an account called me up and told me that i need to square it off or else i wud be penalized for it now i wanna know how true is this as i look up through the posts above and notice that if the option is OTM then there is no value left in it and one can let it expire worthless so i just wanna know if my broker was right in telling me to cover my position which i did @ 10 paise towards the close.


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