Index options in the money

If nifty expired 16050 and we had 16000 call, and we dont sqaure off, price of 16000 call considered as 50 rs? And in contract note we get 50 rs as sell price and for 1 lot 50 into 50 = 2500 rs as credit we receive?

Yes…hold bindaas index itm…not to worry. You will get full premium unlike stock itm on expiry day

Yes, ITM index options are settled at intrinsic value. If Nifty is at 16050 on expiry, the 16000 Call option will expire with intrinsic value of 50, this will be credited to your account.

Also, for Long ITM Options that are left to expire, the exchange charges STT at 0.125% on the intrinsic value. You can learn more about this here: Starting Sep 1st, finally no more STT trap on exercised options :)

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If short in the money call or put index options then also treatment for buy at instict value and ledger debit that amount and exchange charges stt right? Please explain.

Right, if the short option position expires ITM, that too will be settled by the exchange at the intrinsic value, and that amount will be debited from your account.