I’ve bought ONGC 290 CE @ 0.41 today’s closing 278.65. I still hold this position (CE 0.05 at closing), so tomorrow is the expiry as per physical delivery, do i need to buy the stock in delivery (strike price 290 * lot size 3850 total = 11 lac) but i don’t have this much money. is it compulsory to buy the stock? generally, an option buyer has the right to buy the stock but not obligation, right? I don’t know. please help me with solution
I found the answer in varsity. (options module)
only ITM options will be physically settled, if the option expires OTM, they expire worthlessly and there won’t be any delivery obligation.
what if I sold the ce at expiry day and then the stock went above my strike price? still I need to take the delivery?
im not deleting this comment may be it’ll be helpful for any new commerr