Does zerodha square off deep ITM nifty option at 3.20pm?

F&O
1

Hello all,

hi, @nithin @siva-reddy

what if there is a huge price difference of a very deep ITM option at 3 pm on expiry.

suppose, if nifty is at 11000. and I have shorted 11950 put.

but on expiry at 3.10 pm, there is a difference in price due to less volume.

like, for 11950pe > market price is 700

but it should need to around 11950-11000 = 950

so, will Zerodha square it off at market price 700(market price) at 3.20 pm?
or let it expire, so i can get the intrinsic price difference which is 950 ?

also is there any extra charges of tax if i let it expire ?

2

This depends on what Order Type you are using.

If you Shorted it using MIS, it will be squared-off at market price at 3:25 pm.

If you Shorted using NRML, this will be left to expire and exchange will settle it at Intrinsic Value.

There are no additional charges.