What happens on F&O expiry day?

What happens on F&O expiry day?

On the expiry date, you can buy another futures contract to sell 1000 shares of XYZ company. This new contract nullifies the first contract to sell the shares and would hold valid. In such cases, however, you would have to settle the price difference, if any.

What is FnO near month?

According to the Exchange rules, last Thursday of the Contract month is considered as the FnO expiry day.

Can we sell F&O before expiry?

Yes, you can buy or sell options with any expiry on or before its expiry date.

At what time does F&O expire?

BANKNIFTY futures contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.

What happens if I don’t sell my call option on expiry?

If you don’t sell your options before their expiry, your demat account would automatically reflect the profits, if you are in-the-money situation. And if you are in out-of-the money situation, no profits would be reflected in your demat account.

What happens if I don’t sell my call option?

If an option is out-of-the-money on the expiration date, the option has no value and basically expires worthless and ceases to exist.

What is PE in FNO?

CE stands for Call Option and PE stands for Put Options. -Call option gives the holder the right but not the obligation to buy the underlying stock at the predetermined price and time.

What is FNO in stock?

Futures and Options (F&O) both are known as “derivative products”. A Future is a contract to buy or sell an underlying stock or other asset at a pre-determined price on a specific date.

What happens if I don’t sell options on expiry?

What happens if we don’t buy options on expiry?

If you don’t sell your options before expiration, there will be an automatic exercise if the option is IN THE MONEY. If the option is OUT OF THE MONEY, the option will be worthless, so you wouldn’t exercise them in any event.

Can I hold Banknifty?

All strikes of Nifty and Banknifty options are allowed in intraday (MIS) trades. For overnight (NRML) trades, certain strikes are blocked from trading because of the market-wide Open Interest (OI) limits prescribed by SEBI regulations.

When should I sell my call option?

Wait until the long call expires – in which case the price of the stock at the close on expiration dictates how much profit/loss occurs on the trade. Sell a call before expiration – in which case the price of the option at the time of sale dictates how much profit/loss occurs on the trade.