If i sold a icicibank jun 560 pe at premium of 5 rs and cmp is 620, but due to illiquidity i dont get buyer for whole month, will i have to wait till option expire and how much profit will i get if that pe got otm on expiry
If your Option expires OTM, it’ll expire worthless and you’ll get to keep the premium received and that will be your profit (Premium * Lot Size).
Even if your short put expires itm, you will keep the premium - but you will then have to take delivery at strike price.
Exactly,Correct Reply