Nifty 22200 PE 6th June 2024 Options Expiry

Hey Everybody,

I’ve bought Nifty 22200 PE sixth June 2024 expiry, at a value of Rs. 173/- (1 lot). However, due to the massive sell-off I’m presently affected by big losses. Accordingly, it’s requested to kindly define the advantages / demerits of letting the choice expire un-exercised, since it’s ITM, now.

Be aware: I do realise that it could be money settled as nicely on the intrisic worth i.e. 22200 – Spot Value (on the day of expiry) * lot * lot dimension (i.e. 25 in case of Nifty Contracts). As nicely, since I’ve bought the choices thus, no STT could be relevant on expiry.

Kindly right me if my understanding of the above is improper.

Please additionally present perception to the settlement course of as a result of I’m unable to know the ultimate quantity that I must pay and what would occur to the premium that I’ve acquired i.e. 173*25 = 4325/-.

Thanks & Regards.

Hello @ranveer

Be aware: I do realise that it could be money settled as nicely on the intrisic worth i.e. 22200 – Spot Value (on the day of expiry) * lot * lot dimension (i.e. 25 in case of Nifty Contracts). As nicely, since I’ve bought the choices thus, no STT could be relevant on expiry.

Your understanding is right.

Please additionally present perception to the settlement course of as a result of I’m unable to know the ultimate quantity that I must pay and what would occur to the premium that I’ve acquired i.e. 173*25 = 4325/-

When the choice is settled, You’ll have to pay the total premium identical to how consumers typically do to purchase again the choice to shut it. (Change will do it in your behalf)

Let’s assume that Nifty expires at 21800. 22200 PE will expire at 400 and your account might be debited with 10000 rs (400*25) and your internet loss for this commerce will 400-173 (premium already acquired)= 227 factors *25 = 5675 Rs. + different expenses

Thanks a lot for this fast & elaborate rationalization, enormously respect it.

Anyhow, only one fast affirmation… So, my internet loss i.e. cash that I must pay is Rs. 5675 + Different expenses?