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

[ShubhS9]

@Krishn0

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:

What is Zerodha's policy on the physical settlement of equity derivatives on...

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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:

What happens if I don't square off my positions in options?

Index Options (Nifty and Bank Nifty, Nifty Financial Services) are cash-settled. If your Option expires OTM, it expires worthless. ITM Options are settled at their Intrinsic Value. And depending on your Profit/Loss money will be credited to / debited from your account. Also, if your Long Option position expires ITM, exchange will levy STT at 0.125% on the intrinsic value. There will be no STT on the Short position as STT is already paid when you sell the option. More details here: Sto…