Should i cover Short option expiring ITM?

F&O
1

I short BANKNIFTY 30800CE 13JUNE @ 339 and today banknifty closed at 30976 .
Ltp was 160 so if i cover then profit should be around 339-160 = 179
now settled price of CE will be 176 so profit will be around 339-176 = 163
as i was confused so i let it expired and did nothing.
As i know option was at discount due to STT and as a option writer i’ve already paid STT so what should be the ideal action . Please help me with this .

2

@Prince_18,
Yes, since you are an option writer, there won’t be any additional STT obligation. The contract will be settled at 30976.1 with an intrinsic value of 176.1 for the Bank Nifty 30800 CE contract.

3

so its better to cover short ?

4

Yes, you will get better price in the last few minutes before market close than if it is left to expire.
However, if the price moves in your favour after you covered your position, you loose the opportunity to make some more money.

5

thanks a lot for clearing my confusion.