This query might sound very basic to people here, but being a beginner here, i want to educate myself. So asking this question.
Does any CALL Contract with strike price which is greater than the price on expiry day is called as OTM ?
Does all the OTM option get zero on expiry day?
Now Bajfinance Jun 3000 CE is trading at . So for incoming expiry i.e. 25th June, if Bajfinance closes somewhere around 2400 or 2450 , will this option premium become zero? or it will just try to become zero?.
If I have sold weekly OTM Call/Put options and let them expire on Thursday as OTM (i.e closed/bought at Rs. 0 by exchange), will there be problem in taxation? Like can IT-department question, how did you bought an option at Rs 0 and sold at, say Rs 10 ?
Or Should I square them off (buy back to close position) at Thursday 3:25pm at Rs. 0.05 ? My question is regarding taxation. Can there be a problem in taxation point, if I let them expire at Rs. 0.
Also I sold an option at Rs 10.05 (50q) and bought back at 0.05, then what is my turnover ? My profit is 10x50=500 Rs.