This is historical data of NIFTY 12900 CE 12 NOV expiry . It closed at 0.10 at expiry . If I sell this option and let it expire at what price will my option will get settled ? Is it at 0.10 or 0.05 ? Is the LTP given here is the price at post market ? Please clarify , Thankyou
The LTP is the Last Traded Price (the is the price at which last trade would’ve taken place at during market hours), If you have Shorted the Option, as it expired Out of the Money it expires worthless and you get to keep the entire premium received.
@ShubhS9 I have 2 questions
- If LTP is 0.05 why is close price 0.10 ? It should be 0.05 right ? Is the LTP the last trade executed before closing . Suppose 1000 trades are executed assuming closing trade is 1000 . LTP shown here is the price of 999th trade . Is this right ?
- Suppose I short that option at 10 rs . So premium received is 750 . At the end of expiry (OTM) will I be able to keep 750 or 746.25 (746.25 because LTP is 0.05 . So 10 - 0.05 is 9.95 , and 9.95*75 is 946.25 ) . So what is the profit 750 or 746.25 ? 4 RS is not big difference but I want to know …
As underlying closing price gets adjusted to weighted average price of last 30 minutes, the LTP of Option and Close price can vary.
As it is OTM, the Option expires worthless and you will get to keep entire premium received ie. 750.