I have DLF Dec options and currently DLF is in F&O ban. What will happen to all options i have in the my portfolio on the expiry day.
I read that when a script goes to F&O ban, no one can buy the script in F&O except intraday which doesn’t increase the open position, So what will happen on the expiry day since there will not be anyone buying it and everyone wants to sell the options.
Do you think i need to sell the options before the expiry ? I am new to F&O category and catching up with all these terms.
Any scrip which is banned under F&O segment has already crossed the position limit as per regulations. So, till the time it is under ban, one can only initiate a trade in order to decrease his/her existing position. I believe squaring-off is the only thing you may want to do to decrease your position.
Important thing to remember is, during the ban period, you are not allowed to add further positions. (I guess even if you try to do that your order will get rejected on Zerodha; please check on this).
To get more clarity on this, you can see the options chain for DLF on NSE’s website. You can observe the data and analyze the same by looking at the change in OI (open interest) positions; which should be negative across all strike prices.
I have already answered. You need not wait until expiry. You can square off anytime before expiry even if the stock is in F&O banned period.
Also, if u want to wait till expiry, 2 cases maybe there.
1st- By expiry, stock gets removed from banned.
2nd - I m not sure but if stock remains in banned even on expiry day then still you can square off anytime but unless u are ITM for options, why would u waste time holding till expiry?
You would make a profit n square off way before expiry bcuz as the expiry approaches near, your premium would start declining considerably.
your analysis should be up to date, and keep tracking what you positions
scrips come in and go out of ban, it impacts intraday only positional need not worry of ban