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

jitendra commented on 01 Oct 2015, 06:00 PM

Hi Nithin,
One question, done lot of research on it, but not found satisfactory solution, as no example is given with premium =0 at expiry for ITM put option.
Question: suppose I bought put option of company X as below
Strike price : 900
premium : 20
share spot market price : 950.
quantity : 250
now at expiry, the put option price is as below
premium : 0
share spot market price : 450
I did not sell my options, and let is exercised. now what will happen to my trade? Is trade is in profit or loss?
Please clear my doubt, as I have seen this case in Adani Enterprises when it splits in sub companies and share falls around 80%.

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