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

Kumar commented on 20 Jul 2016, 05:43 PM

Hi Nithin, my question is that what happens in below scenario
I write/short UnionBank 115 PE option at price Rs 2 (lot size 4000) and the spot Union bank Value is Rs 126
On expiry day spot value for Union Bank is 110.8 , close price for 115PE option is Rs 3.85 and settled price is Rs 0
So how much loss I will make If I let expire my option writing. Or will I make profit as settled price is 0
Thanks in advance.

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