IT is mandatory to square off OTM put or call option

#1
If I have open position for call or put and now that strike price is OTM, then I have to square off that contract,
If I do not square off that contract then it expires worthless.
so I have not square off that contract then something penalty or something else STT is chargeable to me. of no bill for the OTM contract.

Thanks
 
#2
No such thing will happen if it expires OTM.
STT is charged on total contract value ( not premium value ) only if it is left open and expires ITM.

But if the spot is closely around strike at closing time, preferable don't leave it open. close the open position.
Because, index close is not ltp of the day. It is last 15 mts average and in that calculation if closing value falls ITM to our strike, then
we will end up paying that huge stt.
 
#3
No such thing will happen if it expires OTM.
STT is charged on total contract value ( not premium value ) only if it is left open and expires ITM.

But if the spot is closely around strike at closing time, preferable don't leave it open. close the open position.
Because, index close is not ltp of the day. It is last 15 mts average and in that calculation if closing value falls ITM to our strike, then
we will end up paying that huge stt.
Thanks Mohan.sic for your reply.

so no need to worry about the OTM call or put about square offing.

STT is charged only if we left open position for ITM call or put.

STT is charged on total contract value means strike price * lot, correct?
 

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