Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019

Mohit Saini commented on 21 Jan 2022, 10:33 AM

I received email stating “Long ITM options positions in contracts with compulsory physical delivery”. I have made an Iron Condor for Wipro for 27-Jan expiry. Here are the trades in this –
Buy – 630 PE
Sell – 650 CE
Sell – 660 PE
Buy – 680 CE
Presently Wipro is at around 607. Hence, both the Put options are ITM and the Call options are OTM.
Since I have an equal amount of ITM Put options – bought and sold, hence, I need not worry about physical delivery of shares at the expiry. Is this understanding correct?
Also, can you please let me know that for this strategy, how can I know the increased margin requirements for the last 2 days of trade.
Mohit Saini

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