Option buying expiry

If I have bought atm options and lets say those have become itm options on expiry day, if I don’t square off on the expiry day ? Does exchange credit my account with the final intrinsic value ? Am I charged extra for this ? Is it advisable to let options bought expire as open positions if in profit ?

Yes, settlement happens at Intrinsic Value.

If you have left ITM Option to expire, there is an additional STT of 0.125% levied on the Intrinsic Value of the option.

Thanks for the reply. When you say additional STT of 0.125% on intrinsic value, so for example if a call option was bought at Rs.100 and expired at Rs. 150, is it 0.125% on Rs.50 ? Which comes to Rs. 0.0625 per lot ? Or am I missing something ?

This is right.

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Thanks for the reply. Can you tell me how can one roll over call options instead of buying futures ? Time value can go against us, inspite of our strategy telling us to stay intact in the long call options in a temporary sideways market, what can one do about this ?

@ShubhS9 @Gautam

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You can’t rollover, you will have to square-off your current position and then take fresh position in next Week/Month contract.

N sometimes in buying, even if we are into our strategy but market consolidates, we lose out on time value and hence a loss which is not part of the strategy.

When market goes against our position significantly we loose much less than what the strategy shows. So in the end it balances out and in my experience is positive especially if one is a positional trader.

That too is true, maybe one could sell otm options to avoid huge losses in gap up and gap down instead of option buying ?

You could sell OTM if you are comfortable with the margin you need to maintain to open the position and willing to take the unlimited risk that comes with naked selling and limited profit if all goes well in your direction.