I bought Deep OTM at .2 price… On the expiry day it was .15 but no buyers for it on expiry day… do I loose entire premium or did I get .15*quantity
Yeah, I am also facing the same issue.
Any one please throw some light on this
What are you people up to? From Anil’s question, you would obviously loose entire premium.
Don’t get me wrong, but seems like you both are completely new to options trading.
Share details of your exact trades and then it will be possible to answer your queries.
if it expires worthless , you dont get anything … seller might pocket yours
can you tell me the contract ?
I bought Nationalum series at .2 of 8000 lot size… it was ended yesterday with .15… I sold it but no buyers for it yesterday… My account did not credited 1200 RS…
OK Let’s Understand in Step formation.
Step 1:- Seller A was ready to Sell 8000 Lot size at 0.2
Step 2 :- Buyer A want to buy 8000 Lot size at 0.2 . So Buyer A gave margin of 1600 and took 8000 lot at o.2 .
Note:- Here Buyer A paid total 1600 with one mutual contract that if Price will go up all profit will be belongs to BUYER A and If Price will swing , then BUYER A will get maximum loss of 1600.
Step 3 :- Now Buyer A put sell order at price 0.15 for 8000 Lots but that time no other BUYER B was ready to buy that 8000 lots at 0.15 .
Note:- So in short, Buyer A 's sell order was not success and as on expiry day , BUYER A lost it’s total premium which was 1600 .
Main Note:- If BUYER A want to make profit then BUYER A has to make sure that other BUYER B have to buy from BUYER A.
If you are still having confusion , please let me know.
In Short BUYER A lost 1600 + some tax which was calculated by broker and goverment.
Ohoo I heard that if no buyers on expiry the balance will credited to my account… that I am expecting 1200 from previous script…
That’s why SEBI wants to ban retailers from fno