Comment on Policy on settlement of compulsory delivery derivative contracts

Vamsi commented on 13 Sep 2018, 11:15 PM


I have written Hexaware 440 CE at 10/-(1500 lot size) and also assume that I have 1500 shares(which have cost basis at 400) in my DP and sufficient margin for the same to hold it till expiry and get it exercised.

Now, let us say on expiry day, stock price ends at 435 due to which my contract becomes CTM as per the rule above. So this would get exercised randomly and if this would not assigned to any buyer who has 440 CE at that point, this would become worthless. And I will still have 1500 shares with me and I can keep premium of 1500×10 with me. Am I right?

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