Comment on Physical delivery of stock F&O & their risks
commented on
17 Feb 2022, 11:25 AM
Hey Sanchita, if the Option is OTM (Out of the Money) it will expire worthlessly. If you’re an option buyer, you will lose the entire premium paid. Whereas if you’re an option seller, you will get to keep the entire premium received. Also, as these options are OTM, there will be no physical settlement.