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

Zerodha Social commented on 03 Nov 2017, 11:34 PM

Settlement will be done based closing price of spot. Since ITC closed at 250, the intrinsic value of ITC 300PE is 50. You sold it at 33.45 and it will be bought back at 50. You make a loss of 16.25. Note that STT charges don’t apply on the buying side since you have already paid it while selling

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