Settlement of index options on Expiry

Nifty & Bank Nifty discussions
21

Ok got it… But LTP and intrinsic has any price difference or it’s already calculated before closing. that’s what i want to know … like yesterday 18300 ce LTP and intrinsic almost identical 43.8 and 43.9 …

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22

LTP is driven by supply and demand, so it’ll vary a bit from intrinsic value.

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23

Thanks for the info :pray:

24

Index option settled by closing price or ltp or intrinsic value

25

ITM index options are settled at intrinsic value, while OTM options will expire worthless.

26

Then what is d value of closing price and ltp it is useless

27

Today Banknifty’s LTP is 43629 but the closing price is showing 43596. I held the 436000 CE till expiry thinking that it went ITM but looking at the closing price [later] it looks OTM.

Can we have some way to know the ongoing closing price in real-time before market closes? It could have saved me Rs. 1800 today.

28

The final closing price for the day is the weighted average price of the last 30 minutes of trading. You can use Anchored VWAP indicator available on ChartIQ charts, this should give you can idea.

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29

Sir if i sell nifty option & it expires at 0 I am unable to exit at 3:30 what happend

30

With reference to your query, your short-option position will be closed in exchange and the premium received is your profit.

On the expiry day, if the positions were not closed from our end, all the open positions will be settled and closed in the exchange.

31

Sir muze koi penelaty & charges to nahi lagenge na

32

There is no penalty or additional charges for letting your position expire :slightly_smiling_face:

33

Sir if i sell banknifty option & it expires at 0 I am unable to exit at 3:30 what happend

34

If the option is OTM, it’ll expire worthless. There is no penalty for letting your position expire.

35

Sir bank nifty mai koi penalty to nahi lagegi na

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36

No penalty for Banknifty

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37

Hi @ShubhS9 , please tell when settlement happens?

38

Can you elaborate on your query?

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39

Thanks, settlement has happened. I was asking about unclosed index option expired itm @ShubhS9

40

I hav a doubt …for eg: current nifty price is 23,000 and i hav 21,000 ce buy option at 1,700 I hav observed many times tht there will be no change in price since morning in 21000 ce but I hav buyed it and if market closes at 24,000 but still the price will be same 1,700 so why this is happening and if I don’t square off myself at what price will it be settled kindly reply