Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
15 Nov 2021, 01:11 PM
I have query on Physical settlement of options :
Scenario : Stock – SBIN, Month – NOV 21 – I have following position on PE side : Buy 470PE – 3lots , Sell – 505PE – 3lots on CE Side – Sell 550 CE – 3 lots and buy – 590CE – 3 lots. What will happen if SBIN expires on 520 .
1. Do I need to take deliveries ? ( since this is Iron Candor ?)
2. Will i be keeping the Premium received at the beginning of taking positions of Options ?
3. What is my obligation to Zerodha on expiry in terms of any money to be given or taken while final settlement on expiry if i let the option positions expire till last date by exchange ( 25th Nov 21).
Clarity on this will be appreciated . Thank you