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

Shubham commented on 20 Jan 2022, 04:34 PM

Hey Siva, there is no penalty for letting your long option position expire ITM. If you’re holding a Index Option, this will be settled by the exchange at the intrinsic value. While if it’s a Stock Option, depending on the option type (Call or Put) you will have to give or take delivery of underlying shares.

Since September 1st, 2019, there is no more STT trap. As now the STT is applicable on intrinsic value, instead of the contract value. You can check out this post for more details.

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