Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
22 Oct 2020, 06:12 PM
Dear sir,
Please clarify me on this situation.
I have a long futures in a stock and sell ATM call and put option of the same stock.
On the day of expiry i exit the future position but have to hold on for the call and put due to illiquidity. What if i have these positions open after the market close.
Will the positions get netted? Or do i have to take delivery of any lot because 1 option will be in the money while one will be out of the money. Please clarify.