Do I need to close my Options position?

K

Kaboooooom

Member
#1
#1
I bought Nifty 5100 Put at Rs 30 but since Nifty has been going only upwards the value of Put is reduced to Rs 1-2. At this point, closing the positions will cost me quite a lot in brokerage only. So, do I need to close the positions or I can just let them close automatically on expiry day?
What happens if I do not close the positions? Only my options premium is lost or would I need to pay something extra?
Say nifty closes at 5500 on expiry, and the positions are automatically squared off by the broker?
1. Would I still be charged the brokerage?
2. I hope it will not get converted into a Futures lot and I would be required to pay the difference in terms of Futures lot (5100 - 5500 = 400 points and 400*50 = Rs 20000).

It may be silly, but I still would appreciate the answers, its got me worried.
 
TraderRavi

TraderRavi

low risk profile
#2
#2
Kaboooooom said:
I bought Nifty 5100 Put at Rs 30 but since Nifty has been going only upwards the value of Put is reduced to Rs 1-2. At this point, closing the positions will cost me quite a lot in brokerage only. So, do I need to close the positions or I can just let them close automatically on expiry day?
What happens if I do not close the positions? Only my options premium is lost or would I need to pay something extra?
Say nifty closes at 5500 on expiry, and the positions are automatically squared off by the broker?
1. Would I still be charged the brokerage?
2. I hope it will not get converted into a Futures lot and I would be required to pay the difference in terms of Futures lot (5100 - 5500 = 400 points and 400*50 = Rs 20000).

It may be silly, but I still would appreciate the answers, its got me worried.
Click to expand...

no need to sell ........ your put will be expired worthless...and you do not have to pay any brokerage etc.....ie you do not have to do anything so relax and dont worry kabooooooooooooooooooooooooooooommmmmmmmmmmmmmmmmmmm....................
 
D

dashr

Banned
#3
#3
What if its the other way round.

E.g. I write 5200CE and 5200PE Mar today at Rs.400 and Rs.60 respectively.
On expiry if one of them is in the money and other expiring worthless, do I have to cover the shorts? Or can an option writer leave both unsquared. What's the best way to save on brokerage and STT?
 
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