What happens on expiry date of nifty options?

BANKNIFTY monthly options contracts expire on the last Thursday of the expiry month and weekly options contracts expire on every Thursday of the week. If the last Thursday is a trading holiday, the contracts expire on the previous trading day. The value of the option contracts on Nifty may not be less than Rs.

Can I sell CE option without buying?

A naked call option is when an option seller sells a call option without owning the underlying stock. Naked short selling of options is considered very risky since there is no limit to how high a stock’s price can go and the option seller is not “covered” against potential losses by owning the underlying stock.

What happens if options expire?

Unlike a stock, each option contract has a set expiration date. The expiration date significantly impacts the value of the option contract because it limits the time you can buy, sell, or exercise the option contract. Once an option contract expires, it will stop trading and either be exercised or expire worthless.

Can we hold Nifty options?

As opposed to buying a futures contract, A can buy a 10700 call option on Nifty by paying a premium of Rs 200 (closing price on Friday) per share. If Nifty jumps by 100 points at expiry to 10800 the option value will rise by around Rs 100. The seller of the option has to in this case fork out the money.

What if Nifty is around 5950 on expiry day?

So a Nifty 5900 call which should be at least 50 if Nifty is around 5950 will be at 45, because everyone trading is factoring in the fact that STT will be much higher if the option is held till the end of that day. Similarly with the puts as well. You had 5800 calls and Nifty futures closed on expiry at 5803.

When do options expire in NIFTY 50?

Nifty 50 options monthly contracts expire on the last Thursday of the expiry month and weekly contracts expire on every Thursday of the week. If the last Thursday is a trading holiday, the contracts expire on the previous trading day. 1. The Strike scheme for all short term expiries (near, mid and far months) Index Options is:

How much does it cost to buy and sell Nifty 5900 options?

So, if you buy 1 lot of Nifty 5900 options at Rs 100 and sell it at Rs 100, you have to pay 0.05\% of the premium value on the selling side. So while buying 50 x Rs 100 you don’t have to pay STT, but while selling you have to pay STT of Rs 3.75 [0.05\% of Rs 7500 (75 x 100)].

How to buy and sell Nifty 7700 options at Rs 100?

Trader X buys 1 lot of Nifty 7700 Call options at Rs 100 and sell it at Rs 100, you have to pay 0.017\% of the premium value on the selling side. and no STT for your Buy transaction. So while buying 50 x Rs 100 you don’t have to pay STT, but while selling you have to pay STT of Rs 0.85 [0.017\% of Rs 5000 (50 x 100)].

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