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

Nithin Kamath commented on 04 Dec 2013, 06:45 PM


Didn’t get what you mean by benefited?
If Bank nifty closes at 10000, all calls below 10,000 expire in the money which means they have some value. A 9000 call has a value of 1000, a 8000 call has a value of 2000 and so on. If you let these options with value expire, you pay extra STT.

Why does 6000 calls and 7000 calls show 0 is because there is no trading interest in such deep in the money options, and hence there will be no trades taking place.

Hope this helps,

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