What happens to my In-The-Money (ITM) stock Options on expiry day?
If your stock Option is In-The-Money (ITM) on expiry day, it can be assigned for physical delivery as per exchange rules.
- For Call Options (CE) – You may get shares of the stock whose call option was brought. (delivery will be credited to your demat, and funds debited from your ledger).
- For Put Options (PE) – You may have to payin the delivery of shares (delivery will be debited from your demat, and funds credited to your ledger).
Settlement happens on T+2 day (2 working days after expiry).
Examples -
*Call Option (CE) Example:
You hold RELIANCE 2600 CE
RELIANCE closes at ₹2650 on expiry day.
- This Option is ₹50 ITM.
- You may be assigned delivery of 250 shares of RELIANCE.
- On T+2 day, these shares will be credited to your demat.
- You will be debited ₹6,50,000 (2600 × 250) from your ledger.
*Put Option (PE) Example:
You hold TCS 3500 PE
TCS closes at ₹3450 on expiry day.
- This Option is ₹50 ITM.
- You may be assigned to give delivery of 150 shares of TCS.
- On T+2 day, these shares will be debited from your demat.
- You will be credited ₹5,25,000 (3500 × 150) to your ledger.
Make sure you have the required shares in your demat account (for PE) or sufficient funds (for CE) to avoid penalties.
Common FAQ's
- Can I use the premium/margin from selling my carry-forward Options position for other trades on the same day?
- Why can’t I use the funds from selling my carry-forward Options position for trading in Futures or Cash segments on the same day?
- What happens to my In-The-Money (ITM) stock Options on expiry day?
- What benefit do I get after selling shares from my demat on the same day (T day)?
- How is the limit against Sell given?
- Can I trade in Options and Futures on Expiry Day?
- When will my position be squared off due to losses?