Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
24 Mar 2020, 09:01 PM
Hi,
I have shorted one OTM put. Also, I am long on ITM put of the same stock. The expiry is day after tomorrow.what happens on the day of expiry if I don’t want to exercise the options?. The strike price of the long put is 840. Currently, the stock is at 790. Doesn’t the option expire at the intrinsic value?. Say, if the close price on the expiry day is 800 and if I don’t exercise the option, wouldn’t it gets sold and my account gets credited for 40/-.