Option stock closed 0.05 paisa left for expiry do I get money for 0.05 paisa value?

F&O
1

Hi ,
I am option trader , I took SBI 300 PE but I could not able to make profit and left expiry with 0.05 paisa…
I have 6000 units so ideally Zerodha will pay ₹300/- or I won’t get anything?

Can some one clarify me…!

Thanks…

2

SBI closed at 321, so the 300 PE Option expires worthless at Rs.0, hence you get nothing.

But why do you see 0.05?

Well, that is because each and every option has a time value. Even if the market is about to expire in 20 seconds, then technically for those 20 seconds the option should have at time values. Hence 0.05.

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4

Thanks for clarification… But if it becme zero value then Loss showing up to 0.05 value not full amount what I invrsted…

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5

SO option expires (OTM) at 0.05 0r 0.00 ?

1 Like
6

OTM expiry means worthless- Zero.

7

Then why do people sell their shares at 0.05 while they can earn the profit of 0.05 on each share by letting it expire naturally?

8

BUY u mean?

Maybe due to different charges and STT on expired options

9

hi i happend to see a f&o stock godrej consumer products, its 800 call option on the 11th may 2021 priced at 0.05 paisa when the share was trading at 710 on 11th may 2021. how is this possible against the expiry date of 27th may 2021 where if the stock doesnt reach 800 then time decay will eat all the premium and will become 0.05 but how was it possible to reach 0.05 on the 11th may 2021 itself? can u pls explain?

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10

Probably because that option strike was not liquid and some smart chap had put the buy price of 0.05 as limit order. As soon as some option seller placed a market order, the order would have executed making the LTP of strike as 0.05. Just a guess.

11

The short answer to all above queries is that 0.05 is LTP (Last Traded Price). It does not represent the actual value of the option. :slight_smile:

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