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

Nithin Kamath commented on 26 Jun 2014, 12:08 PM

a. No it won’t always be the exact difference, but typically you will see options trading at a discount to its intrinsic value before market closing on expiry.
b. Yep if the difference is exact, you could just let the options expire 🙂 ,but the problem usually happens when Nifty closes at say 7501 and you are holding 7500 calls. If you sell on the exchange, you will get atleast 0.5 to Rs 1, but if you don’t you can loose Rs 6 or Rs 300 per lot. Hence it is advisable to usually sell all long options on the market.

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