Options Contract Expiry - Actions & Consequences

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:
  1. All In The Money (ITM) Stock Options undergo a Physical Settlement of derivatives. Dive deeper into physical settlement with our detailed blog.
  2. Out of The Money (OTM) options contracts settle at Zero.