in addition to above answers, while squaring off your positions place your orders using the same product type (i.e.NRML/MIS)…if you have bought option using MIS product you should place a sell order using MIS product only then only it will get squared off. if you use different product type for both buy and sell orders you will be creating two different positions…so be careful while you place an order to square off your position…
Thanks Charles for the answer with an example.
Now does it work the same way, irrespective of the fact that when i bought the call option it can be OTM ,ITM or ATM. As i new to this i felt ATM or ITM are better to start with.
Thanks a lot ShreyaDR.
I found something very useful in these cases studies.
But i see that in first example the Put trade is squared off even before the Strike price reached.
Is this valid? IS SQUARING OFF allowed even before option reaches Strike Price?
Now the doubt is have is does Square off means i am actually selling this BUY options right to some one else and the option not getting closed completely like on expiry day?
Sorry for basic questions but some are just out of my thinking and i dont get the answers in the theory.