Queries: Options Carry Forward, Volume and Expiry Day

F&O
1

Hi,

Query-- 1

Is there any interest or other charges levied for Index Option Carry Forward? (Weekly or Monthly?)

Query–2

Secondly, why are the volumes and Open Interest generally so less or low these days for Monthly Index Option? (Nifty and Bank Nifty?)

Assuming on such less volumes and high Bid-Ask Spreads, if one purchases a Monthly Expiry Index Option at the Beginning and tries to sell on the last day, would he find any takers or buyers?

Also, if he is unable to sell the option, is it automatically squared off on the last day (expiry) at around 3:30 PM?

Query–3

Are there any good strategies to capitalize on Call or Put Options (Index and Bank Nifty) on before expiry or expiry day?

(a) What might be the probability of a Supreme Court ruling on loan moratorium next week?

(b) Is there any way to place trades much quickly (apart from basket order) on Kite mobile so that they get are like instantly processed at the Exchange level?

© How fast are the feeds that come into Kite mobile viz a viz other brokers?

Thanks and Regards

1 Like
2

There are no charges to carry forward your position.

No idea about lack of volumes in Monthly Expiry, there can be various reasons, monthly Options generally become more liquid as expiry day nears.

Upon expiry if haven’t squared-off your position, if it is OTM it will expire worthless and ITM Options will be settled by the exchange at intrinsic value.

There are no alternatives but once you placed order it is instantly sent to exchange, but for exchange to successfully execute it there are lots of factors, especially Liquidity and Supply and Demand.

Feeds on both Kite and Kite Mobile are quite fast.

3

Thanks sir.

ITM settlement of Monthly expiry Options at Intrinsic Value (Now there is no STT) involves how much in the money the option is right, sir?

Are there good strategies for Banknifty on or near Expiry Day?

4

If one purchases a single lot of Nifty or Bank Nifty call or put option, the maximum he/she can lose is the premium* lot size right, sir? (the premium might become 0.05 on expiry?)

5

Right but there is STT on Long ITM Options, which is charged at 0.125% on the Intrinsic Value.

Maybe you can read this to learn more about Option strategies:

Right, the maximum loss for a Option buyer can be entire premium paid.

Would suggest you read this module on Varsity to learn all about Options:

6

Thanks sir.