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

Nithin Kamath commented on 10 May 2014, 02:56 PM

Natesh, yeah stock options get illiquid when market moves away from the strike price. All options in India are cash settled with respect to the underlying, what I mean to say is that, if on the expiry day HDIL closes at 120, 80 calls will settle at Rs 40 and you will get back minus all deductions. There is no need of any margin, you have already bought the option, so you don’t need any money to sell it, margin is required only if you are taking a fresh sell in options.

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