When your option positions get exercised, Securities Transaction Tax (STT) applies based on whether you bought or shorted the options.
STT charges for exercised options
- If you bought options that get exercised: STT is charged at 0.15% of the option's intrinsic value.
- If you shorted options that expire: No additional STT is charged since STT at 0.15% of the premium was already paid when you initially sold the options.