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

F&O
1

Hello,
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

2

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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3

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

4

I’m new moderator.

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5

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

6

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

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7

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

8

@Siva can you.

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9

At eod margins will be released.

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10

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).

11

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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12

Thank You.))

13

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

14

Yes, you can,no penalty.

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15

thank you for quick response :slight_smile:

16

A quick question. After the options are expired OTM , when do we see margins gets released fully and then amounts reflecting properly in funds screen? You mentioned that if we purchase fresh option on Friday it will not be counted under penalty. Is this same applicable for stocks purchase NRML also?