Comment on "STT Trap - Options Expiry

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

Nithin Kamath commented on 27 Mar 2014, 06:30 PM

Arun, if you sell the options on the exchange STT will be 0.017% of the premium turnover, so 0.017% of 4000 x 0.15 which is around Rs 1.

If you don’t sell the options, and let it expire, STT will be 0.125% of the contract turnover, so 0.125% of 4000 x 160.15 which is Rs 800.

So it is always best to sell it on the exchange rather than letting expire, if you are holding in the money options.