I had taken a put option. Buy side of Sun Pharma 400 Put. The price today was 502 and I couldn’t square off position. Does this goes into physical settlement if it doesn’t get square off ?
As I know it is OTM option and it should expire worthless. I don’t know why RMS system is sending me a mail for this. Is there any obligation for me being on buy side ?
If the 400 Put expires OTM it will expire worthless and there will be no obligation. Physical settlement obligation arises only when Options expire ITM.
Might just be sending it as warning.
I talked to customer care and the lady on the phone insisted I must square off otherwise physical settlement will happen. I am little confused.
There is no physical settlement obligation if your position expires OTM.
Thank you. I certainly do not have any obligation if it is OTM option. Do I have do anything or let it there in my postion book and let it expire. In any case I wasn’t getting any seller to square off. But still needed to confirm. It will expire worthless, and I do not have to do anything, and no extra charges for letting it expire worthless… Right?
The lady said with such a conviction that I almost got scared. And I started calculating loss.
There are no charges for letting your position expire.