How to exit option contract when there are zero buyers?

General
1

I have an option contract but i can’t sell it as there are no buyers at all. What happens after the contract expires ? Is it possible that i may lose more than 100% of the buy value if the option contract is not sold ?

2

Hi Sahil,

The option contract if out of the money will expire worthless,i.e. you will lose the complete premium you had paid to buy the same. If it is in the money, and it expires you will have to pay a higher STT for the same, take a look at the following two articles.

Hope this helps.

Thanks

1 Like
3

Thanks Lindo,

I’ve already read those articles but i didn’t understand much as i’m new to options trading. I have an open Put option contract which i bought at a premium of 0.60 And now it’s premium is 0.15. There are no buyers at all and i can’t sell it. What happens if it is left as it is ? How much extra charges ?

Thanks & Regards

4

Depends whether your contract is in the money or out of the money. if OTM, no extra charges you lose entire premium paid if ITM, extra STT.
Request you to please understand options completely before trading it.

5

Thanks for your help.