What happens to out of the money option And When the margins are released

lets say I bought and sold options. Both are out of the money at expiry and I didnt square off. I assume I only lose the amount I paid for Buying and recieve Credit for Selling.
Also For Currency derv. options expires at 12:30. Does than mean that My margin is released after that

You can know here on what happens if you don’t square-off your options.

Your margins are released as soon as you exit the trade.

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@ShubhS9 wondering are you new moderator here or someone from Zerodha.

I’m new moderator.

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Thanks for the reply. Assume I didnt manually close the position and the contracts expired worthlessly after 12:30. What happens then?

Your position ceases to exist after expiration, once final settlement is done your margins will be freed.

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Ok. When does the final settlement happens? At the end of the expiry day or after 12:30

@Siva can you.

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At eod margins will be released.

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So Even if the sold option is out of the money after 12:30 expiry, Margins will be released at EOD Right.
Also, Can I take buy or sell using NRML order after expiry time (12:30).

Suggest you to go through this post Bought options on Monday, sold on Tuesday, after which I bought options immediately and got charged a penalty, why?

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Thank You.))

Suppose my OTM Short Put option expired on thursday , margin will be released on EOD. I can take fresh short position in options on Friday without being charged penalty?? Please clarify

Yes, you can,no penalty.

thank you for quick response :slight_smile: