What will happen if the expiry share not sold on the expiry day

I bought 1260call option positional of jubilant food at 8.35 RS of 1500 quantity held for 2 days and my stop loss didn’t triggered and it went to 0.05rs I lost 12500rs which I invested… my doubt is will I loose 12500 or will I have to pay any additional charges plz comment guys waiting for reply

Jubilant did not reach 1260 yesterday. Hence no other charges. Ur option simply expired worthless. No STT

@ksksat , @nithin : In such situation ( auto expire )will the broker charge brokerage ,expenses and stt and also in some cases exchanges do levy penalty too . since i do not do f&o ,not sure hence seeking guidance.

No Sir don’t get confused…wat penalty? Wat STT? He has bought an option betting that jubilant will go up and cross 1260. It did not. He has just lost the maximum premium amount. Option expired worthless

Further while buying option he would have paid brokerage whatever terms and calculation which will differ broker to broker.

Now there is nothing he ows anybody. He has just lost that premium

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what about if has written put ? short sold the option with unlimited risk and let it auto expire ? assuming it auto expired at zero value . will the broker charge brokerage ,expenses ,stt and exchange penalty? i heard from my friends who do f&o that exchanges do levy penalty too in some cases . not sure in which situation . you may please guide.

As kskat said,

If you have bought options -

In the money - If on expiry the option is In the money (ITM) and the STT ( Securities transaction tax) on the option is more than the Intrinsic value of the Options, we will not let the option be exercised and the Option contract will expire worthlessly. If the Intrinsic value is higher than the STT, the option contract will be exercised and the proceeds will be credited to your trading account.

Even for At the money contracts(ATM), if the STT is higher than the intrinsic value, we will not let the contract be exercised.

Out of the money - OTM option contracts will expire worthlessly. You will lose the entire amount paid as premium

If you have shorted options - STT for options is only on the sell side. So you would’ve paid STT when initiating the short. So there will be no STT impact on expiry. Depending on the moneyness of the option contract, you get to keep the premiums received.

There is no concept of penalty when it comes to expiry of Options. Exchange levies margin penalty in case you the required SPAN+exposure margins isn’t maintained.

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@sabkaview the concept of penalty is on futures trading only. In options buyer may have to bear STT on entire underlying if he exercises his option. For option writers the required margin will be blocked when they write the option. It will be released only if the wrote option expires worthless. No either case no penalty in options.

You have already paid the price for purchasing option. On expiry date the option just expiries and becomes useless. You cannot do anything with it anymore and neither a broker. There are absolutely no any kind of penalties or additional charges on option