So I have query for e.g. Suppose Im holding index expiry strategy like iron fly, condor or any other whtr nifty sens dnt matter.
Now at expiry day I’m into profit of say 10k & at end of day before closure after 3pm I try to close the position.
Now 1. If their is no liquidity into that position & my orders dnt execute will I get my premium + profit or only premium?
2. If either only 1 or 2 leg executed & rest 1/2 leg not executed till market closure & at market closure if they dnt get executed what will happen?
As far as I know for stocks options it is physically settled, for indexes not but still this query to clear my doubts
If your exit order doesn’t get filled and the position remains open till expiry, it will be cash settled automatically based on the final settlement price and you’ll get the final P&L accordingly.
If only a few legs get closed and the others don’t, your strategy becomes incomplete. The remaining positions will be settled based on the expiry settlement price (closing) calculated using the average price during the last 30 minutes of trading, so the final profit or loss may be different from what you expect.