What happens to my premium for out of money contracts.
Let’s say I bought a call option lot of HPCL280 at a price of 3rs and currently it’s at 2rs (1 rs loss)
Now I can sell the options at 1 rs loss , or I can wait till expiry.
Now what will happen if I let the options expire and hpcl stays at 240 on expiry day. The call option of HPCL280 wil become 0rs on expiry day which means I will lose all my 3 rs of premium paid?