WHAT WILL HAPPEN IF OPTION CONTRACT IS NOT SQUARED OFF?

FOR LIVE TRADING TIPS IN OPTION CALL PUT/OPTION STRATEGY/STOCK FUTURE FILL THIS FORM GIVEN HERE>>>

There are some new regulations in options trading which every option trader should know. If Your option in OTM you loose only premium but if god forbid your stock option expires ITM and you missed to square off you may loose a fortune. If your Call option is ITM then it is your responsibility to give the delivery of the underlying asset. If you don’t have those shares in your demat account then you need to buy it from the secondary market otherwise you will be fined with hefty penalties. The underlying shares will be debited from your demat account and you will receive money. If your Put option is ITM then you have to keep sufficient balance equivalent to the lots you have traded in your trading account in order to pay for the underlying. Your demat account will be credited by the stocks and money will be deducted from your trading account. If you are trading in Index options, then there will not be any physical settlement. There will be cash settlement for the same. Only the credit and debit difference amount will be adjusted at expiry. No worries of contact square off untill & unless it is an index option but if you have traded in stock option you must have read this article of us http://optioncallputtradingtips.blogspot.com/2022/01/limited-risk-in-option-is-myth.html . In December 2021 day i.e. 31 December 2021  traders got stuck in Hindalco & lost as much as 42 lakh within just few minutes, because of 1 trade in option which was out the money when traded & before contact expired it get settled as in the money.