# How are illiquid options settled on expiry?

**URL:** https://tradingqna.com/t/how-are-illiquid-options-settled-on-expiry/99918
**Category:** F&O
**Created:** [January 12, 2021, 5:00pm UTC](https://tradingqna.com/t/how-are-illiquid-options-settled-on-expiry/99918 "2021-01-12T17:00:56Z")
**Posts on this page:** 4
**Page:** 1

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### Author: ![Rohan\_K](https://tradingqna.com/user_avatar/tradingqna.com/rohan_k/32/21374_2.png) [@Rohan\_K](https://tradingqna.com/u/Rohan_K)
#### Post date: [January 12, 2021, 5:00pm UTC](https://tradingqna.com/t/how-are-illiquid-options-settled-on-expiry/99918/1 "2021-01-12T17:00:56Z")

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Suppose if I buy option which becomes deep ITM and hence illiquid so there is no change in the price so does it settles at LTP or the PnL is calculated based on Spot and Strike price on expiry?

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### Author: ![ShubhS9](https://tradingqna.com/user_avatar/tradingqna.com/shubhs9/32/32667_2.png) [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [January 12, 2021, 5:11pm UTC](https://tradingqna.com/t/how-are-illiquid-options-settled-on-expiry/99918/2 "2021-01-12T17:11:40Z")

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Upon expiry ITM Options will be settled at Intrinsic Value, any profit or loss you will be making will be credited to / debited from your account.

You can learn more about Options on Varsity:

> **[Options Theory for Professional Trading - Varsity by Zerodha](https://zerodha.com/varsity/module/option-theory/)**
>
> Options is a contract where the price of the options is based on an underlying. The contract grants the buyer the right to buy without an obligation

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### Author: ![pankushri](https://tradingqna.com/user_avatar/tradingqna.com/pankushri/32/31315_2.png) [@pankushri](https://tradingqna.com/u/pankushri)
#### Post date: [October 1, 2021, 4:31am UTC](https://tradingqna.com/t/how-are-illiquid-options-settled-on-expiry/99918/3 "2021-10-01T04:31:50Z")

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Why PNL is showing wrong here?

I have bough 2750 Ce and Sold 2800 CE and held till expiry

 ![image](https://tradingqna.com/uploads/default/original/3X/6/2/62b2deabaa9e1aee701844770484570a37446263.png)

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### Author: ![ShubhS9](https://tradingqna.com/user_avatar/tradingqna.com/shubhs9/32/32667_2.png) [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [October 1, 2021, 5:40am UTC](https://tradingqna.com/t/how-are-illiquid-options-settled-on-expiry/99918/4 "2021-10-01T05:40:26Z")

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For account related queries would suggest you create a ticket at [support.zerodha.com](http://support.zerodha.com). Team will have this checked and assist.