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How does zerodha close a trade when there is no liquidity

May 2, 2024
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Say, I promote a CE ATM choice and on the expiry day it turned ITM. Assume, it is vitally deep ITM and there may be purchaser for me to shut the commerce. On this case, what is going to occur. How does Zerodha shut it ?@Jason_Castelino @Stonecold @tallerballer

Santhosh9:

Say, I promote a CE ATM choice and on the expiry day it turned ITM. Assume, it is vitally deep ITM and there may be purchaser for me to shut the commerce. On this case, what is going to occur. How does Zerodha shut it ?@Jason_Castelino @Stonecold @tallerballer

Is dependent upon which choice you’re holding. Index choices expiring ITM are settled by the change on the intrinsic worth.

If it’s inventory choice, you’ll have to give/take supply of underlying shares if choice is ITM.

Have defined this right here: What occurs if I do not sq. off my positions in choices? – #2 by ShubhS9

ShubhS9:

Is dependent upon which choice you’re holding. Index choices expiring ITM are settled by the change on the intrinsic worth

Will there be any penalty/prices ??

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