Comment on Physical delivery of stock F&O & their risksĀ 

Shankarshan 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?

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