Comment on Physical delivery of stock F&O & their risks
commented on
10 Oct 2022, 07:47 PM
Okay, so one thing is clear, futures in stocks are treated as deliverables.
What about hedged positions? Assume margin requirement of 50% is met.
Say, I have bought 1 lot of ACC fut at 2380 and sold the 2360 ITM call that has a premium of 101.
What will be the post-settlement scenario look like? As per delivery rules, I’ll be assigned 1 lot of ACC at 2380 and 1 lot of the same will be taken away from me at 2360?
Will this be ajusted automatically from your end and instead I’ll be credited with the premium of 101*250?