I have one lot of tata steel may 1300 CE. It is most certainly not in the money. Of I do not square off will it simply expire or will it automatically buy tata steel @1300 --CMP 1144
If its Out of the Money, It will expire worthless automatically.
It will expire at 0.05 and you will lose all of the premium paid.
And no delivery for OTM options.
Hy @Drajitsh since you have bought may 1300CE and spot is at Rs 1144 its OTM(Out Of the Money) contract. If the strike falls below spot it would be called ITM (In The Money)contracts. OTM contracts tend to expire worthless (Rs 0.05). ITM contracts shall be physically settled.You can check on this link to know more on Zerodha’s policy for physical settlement.