Options such as PNB PE 60 for this month expiry is selling for 0.05 . Does that mean I will be able to buy it at 0.05 and even if it doesn’t crash I will have zero loss on expiry?
http://justtrading.in/day-trader-lost-rs-18-lakhs-in-5-minutes/
GO through this: http://justtrading.in/5-traps-to-avoid-when-trading-bank-nifty-weekly-options-on-the-expiry-day/
I dont know why every one gives this example without understanding the question the OP is asking.
If option expires ITM, then yes that STT trap was there. I think it is removed now, not sure anyways.
If option expires OTM, then there is no extra loss other than the premium * no. of lots you pay in advance.
So one can take risks with far OTM options with an amount one is ready to lose completely
Your loss will be No. of lots * 0.05
But the price can’t go below 0.05
It might be possible last day u try to sell and no one buy from you. So in that case option expires and you lose 0.05 per lot