ITM call on Expiry

Hello Folks,

If i sell Deep ITM call and if i do not square off the same before the expiry . What will happen in the above mentioned scenario .

Depends on if you have taken position in Index Options or Stock Options.

Index Options are cash settled, so your ITM Call will expire at Intrinsic Value and any profit or loss arising will be credited to / debited from your account.

Stock Options are physically settled, upon expiry for Short ITM Call you are obliged to deliver shares, so on expiry day you need to have shares equal to lot size of Stock Option in your Demat account, otherwise it will result in Short Delivery are you will be penalized accordingly.

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Can u explain that if my position is in the money and i am short and there is a seller circuit , making impossible for me to cover my position what will happen in that case … ( i am talking abt indicies option)

Index Option are cash settled, On expiry day, if your Option is ITM and you don’t square it off, the Exchange will settle it at Intrinsic Value, and any profit or loss arising from that position will be credited to / debited from your account.

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