Comment on "STT Trap - Options Expiry

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

Jayesh commented on 13 Sep 2015, 08:35 PM

Hi Nithin,

Case :-

(1) I pledge TCS shares 250 with you.

(2) I write 2 out of the money TCS call (covered calls) and get the premium in my account. – STT paid.

(3) The call moves into the money – What happens on a non-expiry day? What happens if held till expiry?

(4) The call does not move into the money – I let it expire. Nothing to do. no more charges ?

(5) The call expires at the money ?

Thanks,
Jayesh