Is it mandatory to close open positions in Options?

Trading Charts & Strategies 📈
1

Hi Team,

If I have open positions of Index, Is it mandatory to close the positions on the day of expiry? What happens if I dont close the positions?

Thanks

2

index options are MTM settled so you can leave it as it it to save brokerage. i do this every expiry. OTM options i let it expire worthless.

if you’ve purchased options then STT will be deducted. if it’s shorted options then it’ll expire worthless or if in loss it’ll settle MTM as per settled price.

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3

Thanks. That helps a lot.