Comment on Physical delivery of stock F&O & their risks 

Hi,

After reading the HINDALCO fiasco, I’m afraid to do Stock Options, due to high risk factor. What I wanted to enquire below doubts for clarification:

1. Suppose I buy INTRADAY STOCK OPTION, will I be still liable for stocks delivery?
Assume I do intraday trade 1 weeks prior monthly expiry.

2. Whatever the P&L will this options transaction be auto squared off during intraday or a failure would result in the options getting converted into Deliverable/Normal option.

Thanks.

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