What will happen if i dont sell in the money Nifty Options?

[SubairNA]

Hello,

I bought a Calll option (11900 CE) since its going to expire worthless i didn’t sell. Is there any fine for that? also what will happen if i dont sell an In the money Option and leave it expire?

[ShubhS9]

Explained here.

Settlement of index options on Expiry

Upon expiry, if your Option expires OTM it will expire worthless, if your Option expires ITM, it will be settled at Intrinsic Value. It will expire worthless and you will lose the premium paid to purchase the Option, there are no additional charges. If your Option expires ITM, it will be settled at Intrinsic Value, and for this there will be additional STT charged at 0.125% on Intrinsic Value of the Option. Eg. You bought 11500 CE and Nifty expired at 12000, your Option will have Intrinsic…

[Chiragsavaliya]

For Exapmle
Current month November 23
Bought Nifty 20000 CE March @ 50 Rs
Nifty Expiry @ 25000 on March Expiry Day

1. is there any margin penalty For ITM Option ?
2. Do we have keep any addition marging for settlement ?
   We have heard like this --------- Four days before expiry (previous week Friday to expiry day) in case of open in-the-money(ITM) long options positions.

want to know details rules of exchange in case of Deep ITM Option expiry

[ShubhS9]

@Chiragsavaliya

• is there any margin penalty For ITM Option ?
• Do we have keep any addition marging for settlement ?
  We have heard like this --------- Four days before expiry (previous week Friday to expiry day) in case of open in-the-money(ITM) long options positions.

1. When you buy options you pay the entire premium upfront. There isn’t any margin penalty.

2. Index options are cash settlement, so there is no additional margin requirement. This is applicable only for Stock options as they are physically settled.