I have bought GSPL 250PE May for hedging it with future. I have squared it of at around 2 pm. As it was OTM. But I have noticed that after that many seller was there but no buyer. What happen is such case if no buyer of put on expiry day. GSPL was trading at 260 and no buyer of 250PE .
Hy @Aarif
As GSPL spot is at 260 and you have purchased 250 PE. The contract shall expire worthless since its OTM i.e 0.05. You shall loose the premium paid for the contract on expiry.
ya but I have buy it at for hedging. I have bought GSPL fut at 255 and sold it at 260. Then again I have bought it at 260 and sold it at 265. I have bought it for hedging so my collateral will be low. but what happen when no buyer of put is there
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Ideally you will have to wait till buyers are available in case of such scenarios. On expiry as mentioned they shall expire worthless for OTM.