Dear CB,
Kindly give some time to my queiry as its little different than what you replied :

In short what happens to calls or puts at the day of expiry?What the person(who bought it) will do with call or put ?

Example: On the day of expiry I sold KSoil Option call 10 at 25 Paisa when the stock price was 9.70 Rs. What will the person do with this call who bought it?

Hi Kaushik, Happy Diwali.. yes, seems can add 40-60 points tomorrow. hold it.

Hi Vishnu Dutt, you need to exit it before close.. if you do not exit, it will be automatically squared off. in this case the broker does charge a penalty. in case of relcap call, you can book profit at a higher rate.. there will be buyers who feel stock can move higher and are ready to buy it at the current price.

I will exit when somebody else will enter. What will he do in the best case when prices are going higher and higher?

Thanks for replying.But extremely sorry for some further querries.

What is Exercise/assignment a sight says as pasted below , I got that the in the money call or put options generate money in your account or the share at strike price in your account. I got some clue but unclear, Kindly explain the meaning in very simple non technical language. url: http://www.optiontradingpedia.com/options_expiration.htm

Contents are as below:Assuming you buy to open 1 contract of AAPL's January $200 call option for $15.00 (total price of $1500) when AAPL was trading at $200. You also have $20,000 cash in your trading account.

On options expiration on the third Friday of January, AAPL was trading at $230, putting the Jan200Call in the money. You let those call option expire and end up with 100 shares of AAPL bought at $200 (strike price of the call options) paid by the $20,000 cash in your account automatically.

If AAPL was trading at lesser than $200 during January expiration, those Jan200Calls would expire out of the money, the call options would simply cease to exist and you would have lost the investment of $1500 put towards buying those call options. Nothing more. No further obligations.
To summarise:

ITM long call or short put = stocks in your account after options expiration

ITM long put or short call = short stock position in your account after options expiration

OTM Options (long or short, call or put) = Expire Worthless

Options Expiration Value Formula
The value of an option at expiration can be calculated using a simple formula:

Expiration Value For Call Options = Stock Price - Strike Price

Expiration Value For Put Options = Strike Price - Stock Price

Negative values represents zero value and that the option is out of the money and would expire worthless.

Actions You Can Take on Options Expiration Day
There are four actions you can choose to take for existing positions on options expiration day and they are; Close Out, Exercise, Roll Forward or Let Expire.

Close Out
You could choose to close out your options position on expiration day in order to end the position. This is useful when your options are profitable and in the money. All in the money options would be liable for assignment upon expiration, as such, you should choose to close out your existing in the money options positions if you do not intend to take position in the underlying stock itself. Closing out the position means to Sell To Close existing long positions or Buy To Close existing short options positions.

Exercise
All in the money options will be automatically exercised upon expiration, as such, there isn't a real need for you to manually exercise your position but you could still choose to do it.

I know its very time consuming for you,Please Help to understand the concept.