What will happened to the bought nifty deep in the money options which is left on the expiry day. Will I be heavily charged stt and other charges or I will get the exact intrinsic values…
Pls explain @nithin or @siva .
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Yes you will be charged heavy STT. Dont do it
Roughly about 1000 INR as STT, per LOT.
You will be charged heavy STT. The below post explains it
But here is the thing, on the last day these options will be trading at a discount to the actual intrinsic value. So the market will be factoring in the higher STT that you would pay if held to expiry.
Assume Nifty is at 11000, 10500 calls which should ideally trade at 500 atleast, will be trading at around 6 to 13 point discount factoring the STT that would go out. If the discount is more than 13 points (breakeven in terms of STT if option held till expiry), you should maybe not square off just before market close on expiry day.
@nithin what’s the benefit of not squaring it off and letting it expire? if one is online and he is in position to squaring it off why he should let it expire?
It was said if discount is more than 13 points( STT) then one can let it expire if not by squaring it off one can save some part of STT.
@siva … what is the logic behind 13pt.
And what about in the money options in the case of sold options
It is STT for nifty options if they expire ITM, STT is .125% of total contract value (nifty spot* lot size), may be you should go through the link above Nithin shared.
STT is paid while selling, so for short options it is already paid, as said please go through the link shared by Nithin, you should also put some efforts from your end I believe.
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