INTRINSIC LESS THAN EXPECTED - OPTIONS

[OPTIONSRIGHT]

Hmmmm....

Right questions can be answered. Wrong questions can't be answered because question is wrong and baseless.

Please stop blabbering!

People dumping is all fine

But after close where should be the closing price of ITM OPTION?

check nse site and tell us........... Will you?

And then explain everything again............. Do you have the guts?

This does not require guts, but only understanding! BTW, only those responsible for this mess are afraid of this getting exposed!

What is a settlement price? It is the price paid in lieu of giving away something. In this case, it is the ITM option holders, where it is compulsorily exercised on expiry, meaning the holder is made to give away his holding for the settlement price!


Settlement price for the ITM Options is the price that you should receive in lieu of the ITM options holder! Are the ITM Options holder getting this settlement price?
The way the settlement price, as defined in NSE now, all ITM Options holder (buyer) on expiry, should get the 'Closing Price of the relevant underlying security or index'.
For example, if Nifty closes at 9703 on the expiry day, all Nifty CE holders with strikes <= 9700, should get 9703 as the settlement price.
All Nifty PE holders with strikes >= 9800, should get 9703 as the settlement price.

 

[simplebuthard]

Hmmmm....

Please stop blabbering!

Okay!

 

[simplebuthard]

very good news for this issue from bse,

https://tradingqna.com/t/no-more-stt-trap-on-exercised-in-the-money-options/18977

 

[OPTIONSRIGHT]

Good, but nowhere enough. Still the ITM Option holders are being forced to lose their ITM portion.

The exchanges were collecting more taxes than what is mentioned by the Govt, that had made some lose heavily.

I was mentioning that the concerned guys were afraid of this getting exposed. This seems to be a damage control exercise to cover up their mistake.

But surprised at the traders not understanding. All that the people who lost money have to do is, file a case in the court of law and get their money back. That is the reason why I had asked for support from our fellow traders, which I am sad to note, was not forthcoming, but for just a few.