What happens to unsquared options at expiry

Sun, 21 Jun 2026 00:00:00 +0000

When an option is left open at expiry, unsquared options are resolved automatically by the exchange according to their moneyness and their underlying. An out-of-the-money option lapses worthless; an in-the-money index option is auto-exercised and cash-settled against the index close; an in-the-money single-stock option is auto-exercised into compulsory physical delivery of the underlying shares at the strike. The framework is set by the Securities and Exchange Board of India and the clearing corporations, and on Zerodha it plays out through Kite and the back-office settlement process.

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What happens to unsquared options at expiry