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Old 26th October 2016, 03:00 PM
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Default In The Money Options with No Buyers?



I have a put of Ceat Ltd which is now deep in the money.

There are no buyers for it unless I sell it at a steep discount to the intrinsic value.

The problem is that Ceat is now in F&O ban and thus I can't even buy futures to lock my profit.

Kotak may allow me to buy 700 shares with my margin, but buying today and selling tomorrow (700 shares) will mean an expense of 1.6% of the lot size.

Is there anything that can be done in this case?
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Old 27th March 2017, 08:02 PM
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I hope you could have enlightened us with how you managed this classic situation where retail investors are denied their luckier day due to rules favouring bigger players.
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Old 27th March 2017, 09:43 PM
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Quote:
Originally Posted by ajbadgaiyan View Post
I hope you could have enlightened us with how you managed this classic situation where retail investors are denied their luckier day due to rules favouring bigger players.
I did nothing, just held on.

The option expiry was the next day and the stock went down 3% more on expiry day. Turned out to be a blessing in disguise. .
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Old 28th March 2017, 09:48 AM
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The ridiculous way STT is calculated for options leaves people looking to sell more desperate than buyers close to expiry. So options trade at a discount to where they should fundamentally trade.

STT Trap – Options Expiry – NSE BSE MCX-SX Z-Connect by Zerodha
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Old 24th April 2017, 01:59 AM
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The 27 year old Chirag Gupta had a horrible disaster from this.

Tax: Taxes more than gains? Yes, if you don't exit your options in time - The Economic Times
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