Physical settlement needed for OTM or not?

[Ankit_Agarwal]

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?

[Ushnota]

Hi @Ankit_Agarwal,

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

[Ankit_Agarwal]

Thanks,

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

[Ushnota]

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

[Ankit_Agarwal]

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