Can someone please guide me on this
If I take a options buying position on Index for December expiry and let’s say if it become deep ITM till Expiry date and due to illiquidity I am unable to square off my position. Will profits from that position be credited to my demat account
Yes. Index options are cash settled, so upon expiry, the ITM option will be settled at the intrinsic value (Spot Price - Strike Price if you’re holding Call Option and Strike Price - Spot Price if you’re holding Put option).
The net P&L you will make will be the difference between your buying price and settlement price. More: What happens if I don't square off my positions in options? - #2 by ShubhS9
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