Why buying stock options on the expiry day is not allowed?

New purchase or sale of stock options are not allwed on expiry day. This restriction is placed because contracts during this period may be subject to physical settlement. Nevertheless, clients retain the freedom to close out any existing positions they may hold.

It’s essential to note that maintaining open long positions during the last day can significantly escalate margin requirements. This is primarily due to the probability of physical delivery of option contracts. Certain times exiting such contracts may become challenging due to illiquidity.

For further clarification or assistance, please feel free to reach out to our support team by writing to us at help@tradejini.com