Wonder how expiry will work in that case. Hopefully that will still end at 3.30 when the underlying stocks stop trading
Why traders are afraid of this new Sebi rule about physical settlement.?????
1 solution.......
Supoose you bot a call in one of the stocks in settlement list.
If its oout of money at expirey ... you don't settle any thing....
If its ITM 4 days before expiry... 1 can try to book profit.. whatever the bid ask spread may be
If its deep ITM or / and has become very illiquid 4 days before expiry. now what to do....
simple solution.
short a future 4 days before expiry...
now let both of them get exercised at expiry.
At expiry ..... You will have to buy equivalent shares against Call
You will have to deliver equivalent amount of shares against short future.
so both cancel out. nothing happens. relax m enjoy
vice versa for puts
Problem will be only for those with naked derivative positions.
Thora margins rakhna padega account main.
Regards