Comment on Policy on settlement of compulsory delivery derivative contracts
commented on
27 Mar 2019, 08:13 PM
For out of money call options, the article reads as follows
OTM (Out of the money) options are those strikes which are above the final settlement price for calls and below the final settlement price for puts. All OTM options will expire worthless. There will be no delivery obligations arising out of this.
I have certain significantly OTM call options and are on course to expire. However the system automatically increases the margin requirement even if the option is OTM. Tried explaining this to the representatives and believe they go by the rule book and have lost my profits on account of this awareness. Let me know if I am missing something.
https://support.zerodha.com/category/trading-and-markets/margin-leverage-and-product-and-order-types/articles/policy-on-physical-settlement?ref_query=physical