News : “Do not Exercise(DNE)” Facility in Options Trading to be reintroduced wef 28th April, 2022

Market Announcements 📢
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Starting from 28th April 2022, “Do Not Exercise “ Facility will be coming into effect again.

Traders can opt for “Do Not Exercise(DNE)” facility for their open positions in Stock options, this will be especially helpful for the traders who have out-of-money(OTM) positions, and during the day of expiry their out-the-money becomes in-the-money(ITM) options.

As per the circular no, NSCCL/CMPT/35635 dated August 22, 2017 CTM(Close-to-Money) contracts shall be arrived as :

  • For Call Options - 3 ITM options strikes immediately below the final settlement price shall be considered as ‘CTM’
  • For Put Options - 3 ITM options strikes immediately above the final settlement price shall be considered as ‘CTM’.

Please note that the “Do Not Exercise” Facility is only available for stock options.

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Thanks Rahul , can this be considered as a Positive point ?

Wont get Stuck in exorbitant price differences in this case right?

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I have heard an incident last time the person as take option call hindalco till market close it is OTM, then in the post market it become ITM, I think because of the exchange introduce CTM option. CTM required physical settlement or cash settlement.

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