Let’s assume Nifty spot is 10000 and I am sure that market will go downward today. So I short 10000 lots at the strike price of 10100. And at the end of the day the market closes at 9900. This means I am in profit.
But my concern here is that what if I decide to reap the maximum profit and wait until 3.15PM till the premium price drops to 10 paise.
Can I still sell 10000 lots at 10 paise? I mean can I find buyers for such a huge lot?
Everyone knows that buying OTM at 10 paisa on expiry day and that too at 3.15pm is pure suicidal. So would anyone buy at that time? And what if I don’t find any buyer?
Please note that I am aware of the fact that I should square off my positions early. I do that often. But here my question is what if I decide to wait until it drops to 10 paisa, can I still sell off my whole position of 10000 lots?
Thanks a lot in advance.