Physical settlement needed for OTM or not?

Hi all,

The upstox site doesn’t explain what happens to OTM positions for stocks on expiry, is physical settlement mandatory only for ITM or OTM as well? Same goes for auto squareoff?

Hi @Ankit_Agarwal,

Please note that OTM options expire and do not require delivery. ITM stock options mandate delivery.


I am also guessing no auto square off happens for OTM or margin is needed for OTM?

No, we do not charge for the auto square off.

Can you explain why I am getting this even though all positions are OTM?

Guys… What if I hold OTM stock option, enter into expiry week, should I require additional Margin for OTM Options?