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.
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.