If I sell 1 lot of say, ITC 260CE at 9 (lot size 2400) and by the end on expiry ITC trades at 266 and I let the option expire…what are my profit/losses…will I hav to buy the 2400 shares from the cash market which i did not square off…??
No your blocked margin will settled in cash by exchanged and remaining if any will be credited to your fund.
1 Like
No you don’t have to buy shares. It will be automatically settled in cash. Infact, if ITC closes at 266 at expiry, you will earn some profit ( 7200 minus Taxes & other charges)
1 Like