Suppose I sold banknifty or nifty OTM options on expiry day using bracket order or cover order. What are chances that there will be buyers ? In case no buyers what happens to my sold positions ?
I understand that if i sold using NRML or MIS , OTM options become worthless end of day and there is no need of buying. Is the case same for BO and CO ?
There is no BO CO in BankNIFTY options in Zerodha my friend.
OTM options are too liquid at the end of expiry mostly thanks to algo trading. But sometimes it will happen you may not be able to exit at 0.05. It will then go to settlement and executed at 0.00
NRML = There is no need of buying back. It will settle at 0.
MIS, BO, CO = Will be auto squared off by 15:20 as per Zerodha’s rule.
Thanks. but how they will square off BO if there is no buyer thats my question and in that case is there any fine. I hope no as option is worthless but just want confirmation
If there is no buyer?
This is an intraday instrument so it will be auctioned. I got amazingly screwed with Eicher shares once due to this.
In BN options there are no CO BO in Zerodha. BN options will always get squared off due to heavy liquidity.