Hello everyone,
By mistake I chose wrong expiry on FINNIFTY 19200 CE, instead of DEC I chose NOV. And the bad luck is today is an expiry for FINNIFTY 19200 CE NOV contracts.
What would be the implications if FINNIFTY is currently trading at 19231?
Happened first time with me.
Index F&O are cash-settled. As the option has expired ITM, it’ll be settled at intrinsic value (Spot price – Strike price). Taking the above example, the 19200 CE will be settled by the exchange at Rs. 31.45 (Spot price (19231.45) – Strike price (19200)).
The difference between your buy/sell price and settlement price will be your P&L. More details here: What happens if I don’t square off my positions in options? – #2 by ShubhS9
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So what value I would be getting back if I had 280 Qty (7 Lots)?
Suppose you bought 280 quantity at 100Rs/- (=28000Rs/-)
Sold or option expired at 110Rs/- (30800Rs/-)
P/L= 2800Rs/-
Or simply multiply the quantity with the points gained or loss.
280×10=2800Rs/-
Loss I know as its shown on the MTM and As I bought it higher and market crashed, but are there any additional charges?
Is there any penalty if you dont square off an ITM option?