What will happen if we dont close deep ITM option at expiry

#1

@siva What will happen if i fail to close the deep ITM option which i sold and the option expires or i dont find sellers for me to buy again. What would be the loss for me other than the amount i used to sell the option.

#2

Any ITM if not expired will be closed out at intrinsic price of the option. So if you shorted Nifty 11000 calls and Nifty closed expiry at 11500, 500 points is paid back to the buyer. So your selling price - intrinsic value = P&L

But if you are holding stock options which are compulsory physical delivery, you will have to either give or take delivery of the stock based on short puts and calls. Check this

#3

Thanks @nithin