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

natesh commented on 10 May 2014, 01:57 PM


Hi Nithin, thanks to your patience of answering each and every query. I’ve a basic question on call option expiry in the money. have bought 24000 qty HDIL call option for 2.35 of 80 strike price for may’14 series. what if HDIL reaches 120 rs by the end of expiry at 3.30pm and i don’t sell my 3 lots of options.

Will i get the difference amount to my account minus all deductions (brokerage + STT :0.125% of contract value + other taxes)?

Should i have enough margin to buy 24k qty shares at Rs 80 or it’s not necessary to have margin to get the above settlement?

my assumption is there will be not enough bidder of Rs 80 call option close to expiry when HDIL reaches around 120 market price so either i’ve to leave my 3 lots it till the end or i can sell it for a lesser price may be around 20-30 in the exchange. Kindly suggest so that i can take proper decision knowing the expiry scenario.

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