Option Exit Query

Hi @siva @ShubhS9

This is BN. 1 setup gave a signal of Probable Bottom at the close of 1:15 pm in the hourly candle with closing price quoted as 32628. Also the target is about 1000 points in the upsides. Now as its Tuesday, 2 more days for the weekly expiry, i either sell a atm put i.e 32600 pe or trade via spreads. Because if higher margin for selling i chose to execute a call ratio backspread with buying 2 lots of 32700 ce and selling 1 lot of 32500 ce of the current exipry.
Now the issue is:-

(kindly please go through the option chart pics)

while executing the spread the volume in both the legs was healthy. but as we near to the expiry the volume dries up like hell as we go more and more deep itms. its 3k volume on a hourly tf in the option strike,

  1. Will i be able to exit my trade or not with such illiquidity in the strike in which i had my trades running?

2)What if i couldnot exit my trade before exipry? how much stt will be charged?

3)what to do if i cannot exit my spread due to illiquidity?

(the quantity of the trade in multiples of 10k, and also as i am hedged i want the max benefit of gamma effect so will stick to weekly options rather moving to monthly. )
So with such low volume what shall i do if i gets stuck in!?

Today was weekly expiry and Bank Nifty closed at 34475.6. The 32500 CE and 32700 CE positions you hold will expire ITM and will be settled by the exchange at intrinsic value (Spot Price - Strike Price).

STT is applicable on Long ITM options at 0.125% on the intrinsic value. If the position is short this will not be applicable as STT is already collected when short position is taken.

1 Like

thanks @ShubhS9 for clarification

@ShubhS9 so no problem for illiquidity issue or anythng!?

No, no issues as such.

thanks @ShubhS9