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

Nithin Kamath commented on 29 Jul 2013, 09:37 AM

Yes, EZ you are right,

When you short options you are already paying STT and hence don’t have to pay STT when either you buy back or let it expire.

When you buy options, you haven’t paid STT, so if you sell it in the market you will pay STT at 0.017% of premium and if you don’t sell it and let it expire, if the options have any value, you will have to pay higher STT..

so yes option writers are in an advantage..

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