I was reading about compulsory physical delivery of stock options and am a bit confused now about whether I can let my stock options expire or I should try to close them.
I have shorted a 1640 CE and a 1560 PE for Reliance.
If price closes at Rs.1620, since both are OTM, I can safely let them expire right without any extra charges?
If price closes at Rs.1700 and I’m in loss but still don’t close till the end, will I just pay the loss amount?
If I manage to close just one side before expiry because of not getting my price, let’s say I close the 1560 PE but I didn’t get a buyer for the 1640 CE and the stock closes at 1650, how will the physical delivery work on my shorted call position?