Query regarding Nifty Options expiring in the money

F&O
1

Nifty 11850 CE (14 Nov) Closed (on its expiry date i.e 14 Nov) at Rs 22

While Nifty Nov Fut closed at 11900

Suppose if I had bought Nifty 11850 CE seconds before the market closed @ Rs 22 and let it expire in the money, there by exercising my option .

Would I be making a profit of 28? Or are there some more charges that would be levied apart from the usual fee & Taxes on options trading? Does the Nifty Options premium usually trades with such a huge discount on the expiry days or was today’s instance one off event?

2

well, to calculate intrinsic value we need to consider spot close value not future close. Looks like today nifty close is 11872.10. hence, intrinsic value would be 22.10/-. To know the charges on exercised contract refer this link.

1 Like
3

Man, you are confused as those two derivatives have different expiration dates. Your Option expired today and the future will expire on 28th November. That’s the reason for difference in price value you are accounting for.

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4

Got it. Thanks.