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.