What happens to a call option on expiry?



say i brought CALL option of NIFTY,100 lots at strike price 50, and at expiry day i didn’t square it off, but the cash price is of stock is 40, so what happens now, do i lose everything, or what else can happen??Will the money be dissolved?? Can u help me with detailed explanation and an example on this.regards.

One Reply to “What happens to a call option on expiry?”

  1. Your call option will expire out of the money, worthless, disappears into thin air along with the money you used to buy it with. This is because the stock itself is trading at a price lower than what the call options allows you to buy it with, thats why the call options will have no value. For more detailed explanation on what out of the money options are and what happens during options expiration, read the links below:





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