Lets say i buy 30800 PE at 3rs and bank nifty closes at 30780 and LTP is 5 at the time of expiry. how much i profit if i let it expire, 5 or 20rs? and how much stt i will pay for this ITM expired option.
also question about stock option, if i let ITM stock option expire i believe i will have to buy the stock. what happens if i dont have enough margin for stock?
so stt trap is still here? i thought its gone and almost bought yesterdays niftybank 30800 put at 4rs when 10sec left to expire thinking i will make 15rs profit. luckily my trade was declined.
so if i bought banknifty put yesterday, i would have paid .125% stt for 30800 not for 4rs premium, am i right?
When you let the option expire, If your profit i.e. intrinsic value of option is more than the STT, only under such condition option is exercised, else you just lose your premium.
So to answer your question STT trap is not there anymore
by lose your premium you mean i would have lost that 15rs profit+4rs i paid, so ended with nothing? im asking because if i loose everything even when the strike is ITM then its not worth the risk buying right before expiry.
You would lose 4rs, gaining nothing
It closed at 30780 on expiry
Alright, TY for clarification