Option Expiry Trade

What are the charges one has to pay if worth less option (0.05) is not squared off at expiry? Is there any penalty for not squaring off ?

It will be mostly out of the money, expires worthless. Neither charges nor penalty is levied. Learn more about options here. Also, check Sensibull.

thanks @TheGouda for the update. In the Varsity, which module and chapter I should refer for clarification? Also I want to know do Zerodha (@siva-reddy ) auto squareoff these option around 3:15pm on the expiry day?

What clarification?

We will try to do, sometimes counter parties may not be available.

I want to know is it necessary to square-off shorted option (0.05) at expiry? if not done then is there any extra charges levied by the exchange?