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

Nithin Kamath commented on 13 Jun 2014, 09:59 AM

Case 1: Yes you can just wait it out to expire if liquidity dries up. All expired in the money options automatically are exercised and you don’t have to do anything for this.

Calculation is based on intrinsic value, in your case Rs 700 x 50 = You get back Rs 35000, but as I have explained in the blog above you will end up losing around Rs 400( 0.1% x 8000 x 50) or around 8 points per lot as STT if your ITM options get exercised.

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