Must-Know for New Derivative Traders: Do Out-of-the-Money (OTM) Options Really Expire Worthless?
Must-Know for New Derivative Traders: Do Out-of-the-Money (OTM) Options Really Expire Worthless?

Must-Know for New Derivative Traders: Do Out-of-the-Money (OTM) Options Really Expire Worthless?

What happens on the expiry day to OTM Options? 

DSIJ Intelligence Article rating: 3.7

Of course, you may notice an apparent value of Rs 0.05 for OTM options close to expiry, known as the Last Traded Price (LTP). However, it's crucial to distinguish LTP from the actual value of the option on expiry.

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