Index options are cash settled, so no physical delivery obligations at expiry.
Question
Options If market goes from 30K to 33K
If I short 30K ce @1000 becomes @4000 as ITM
And long 31k @500 becomes @3500 as ITM
Then if I let it expire
Short option will settle @3000
And long option will settle @2000
Then in short position whatever bid/ask…It will exit only @3000
And long position …will exit @2000
I just need to pay extra STT (0.125%) only for long position
I should not worry about extra margin?
Means there no worry about delivery of shares for index options?
Please confirm it
If market goes from 30K to 33K
If I short 30K ce @1000 becomes @4000 as ITM
And long 31k @500 becomes @3500 as ITM
Then if I let it expire
Short option will settle @3000
And long option will settle @2000
Then in short position whatever bid/ask…It will exit only @3000
And long position …will exit @2000
I just need to pay extra STT (0.125%) only for long position
I should not worry about extra margin?
Means there no worry about delivery of shares for index options?
Please confirm it
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