What is my both call and put sell options in a stock are ITM on expiry?

What will happen if my both call and put option (both sold) for the same stock are in the money on expiry. Do I still have to through physical settlement or will the physical settlement be cancelled?

Your physical settlement obligation will be netted-off against each other. Refer to the below screenshot explaining the net-off scenarios:

TH4JQCYS_Screenshot_208

You can learn more about physical settlement in detail here.

1 Like

@Nikhil_Mittal you got inverted?

I made a short strangle. So what happens on expiry day if only one leg of my position goes ITM? Do I have to pay any charges? if yes how much?

In a scenario where one of your Stock Option position expire OTM and the other ITM, the option which expires OTM will expire worthless, while you will have to give/take delivery of underlying shares for the option expiring ITM.

The brokerage for physical settlement is 0.25% of the contract value. Along with this STT of 0.1% will be applicable, this too on the contract value. You can learn more about physical settlement in detail here:


If you’re trading in Index Options, then the option expiring OTM will expire worthless. While the option expiring ITM will be settled by the exchange at the intrinsic value. There are no additional charges for letting your position expire ITM.

Index options are cash-settled, you don’t have to give or take delivery of shares. You can check out more details here:

The timing of his question makes me believe he is talking about index options.

Updated. Since the topic was about stock options, had updated only about it :slightly_smiling_face:

1 Like

Yes I was talking about index options. I had 17500 PE sell position open that time.