What will happen if I don't square off my Options contract on the expiry day?
If you overlook squaring off your options positions on the expiry day, the position will settle based on the exchange's determined price. The difference between the settlement and your entry prices will reflect in your trading account ledger.
Remember:
All In The Money (ITM) Stock Options undergo a Physical Settlement of derivatives. Dive deeper into physical settlement with our detailed blog.
Out of The Money (OTM) options contracts settle at Zero.
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Can only a portion of the options contract be exercised?
The exchange exercises options in their entirety. Partial exercise isn't an option. for instance, if you own an options contract for 100 shares, all 100 shares will be exercised together. You cannot choose to exercise only 50 of them.
Which product option should i select on FYERS to extend my F&O contract until its expiry?
To hold an F&O contract position beyond the day, opt for the 'Invest' product on FYERS. Note: Any order of F&O contract placed under 'Trade' will be squared-off as per the intraday timings.