OTM options when trading halted on expiry day

Rajendra_B_N · March 25, 2020, 8:45am

What happens to OTM options when trading is halted for remainder of day (For eg, 20% uptick or downtick)? OTM option strike is beyond this final price.

vishnux · March 25, 2020, 8:55am

otm expire worthless , compared to last closed price I guess…

Rajendra_B_N · March 25, 2020, 9:07am

Are you sure? I can not find any literature from NSE or BSE.

@nithin @siva could you clarify this?

SachinSingh · March 25, 2020, 9:30am

Have the same doubt. Maybe @Karthik can help.

anshabhi · March 25, 2020, 9:37am

I think on expiry ITM are cash/delivery based settled and OTM are reduced to 0. That’s it

siva · March 25, 2020, 9:42am

If it’s OTM, it will be worthless.

Rajendra_B_N · March 25, 2020, 11:08am

Thank you Siva for clarification.

vipul_rathaur · June 15, 2021, 5:28am

@siva In the case where Nifty loses more than 20% and trading is halted for the day. Will all the products listed in NSE be halted or only Nifty underlyings?

siva · June 15, 2021, 7:29am

Everything will be halted, complete market.