Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
26 Mar 2020, 09:17 AM
Pramod,
1. At 840, the position is OTM, you get to keep the whole premium. There won’t be any physical delivery obligation.
2. At 780, the position is ITM and is physically settled. You will receive the shares at a buy average of Rs 775(Strike Price – Premium received). You can realize the profit/loss from the stock received by selling it in the market.