MIND BOBLING ITM/OTM TERMS IN OPTIONS TRADING

What is ITM/OTM IN OPTIONS TRADING: 

After getting this guy's

 (https://twitter.com/Aftabkhan918?s=09)

Twitter's news many people r in fear dat 

Wether options consist that much taxes in form of STT?? 

Let's understand what is ITM/OTM(in the money/out of the money) 

Case:1:If Nifty is presently at 9891, then 9800 Call is called ITM

 (B'coz if the option expires now, there will be an intrinsic value i.e. 9891 less 9800= 91), means Positive Cash Flow.

Case:2: 10,100 call is called out of the money because it has no intrinsic value.(9891-10,100) i.e -209 means out of cash or negative cash flow.

Similalry, PUTS r just opposite 

10,100 puts is ITM,  and 9800 puts is OTM

And ATM is a position where STRIKE = CMP

Hence it's preferable to square off ITM Position timely,rather let them expire on Expiry day!!

Else STT will be higher !!

Hope query resolved !!

Will come up with New Discussions soon
Till den!!

#Stay_Raw 
#Think_Hatke