Draw back of letting deep ITM of Nifty exiry

[starttrade]

Hi,

Is there any draw back if I leave deep itm Nifty contarct to expiry. I know if I sold, its not a problem 'cause I already paid SST. But what about long contracts?

Thanks for your help.

[ShubhS9]

@starttrade

Is there any draw back if I leave deep itm Nifty contarct to expiry. I know if I sold, its not a problem 'cause I already paid SST. But what about long contracts?

Long ITM contracts will be settled by the exchange at intrinsic value. Also, the STT will be applicable at 0.125% on the intrinsic value. Please check out this post for more details:

Starting Sep 1st, finally no more STT trap on exercised options

So finally, after years of voicing this issue on every possible forum, there is no more STT trap on exercised options (announced this budget). Here is the circular from NSE http://www.nseindia.com/content/circulars/FATAX41919.pdf [image] STT on exercised contracts from Sep 1st, 2019 will be charged at the rate of 0.125% of intrinsic value (how much in-the-money the option is) and not on the total contract value like earlier. Intrinsic value for OTM (out of the money) options is always zero,…

[Maverick_Trader]

so if I have sold 16500 PE and Nifty Expire at 16000. Then 500 is the amount that is in the Money.
So the 0.125 STT will be on Rs 500 X 50 ?

Is that correct ?

Or will it be on Rs 16000 X 50

The STT will be more than Rs 1000 for that !

[KarthikAcharya]

Hy @Maverick_Trader

If you have shorted options, it is STT = (0.05% of the premium value) so if you let it expire on the exchange there are no extra charges.

[Maverick_Trader]

Thank you Karthik,
How can I see at what price was my ITM options was squared off by my brokerage/exchange if I just the ITM option expire? Can I see it on Thursday Evening or Friday Morning ?