Comment on Taxation Simplified

Dear Sir,

I would like further clarification regarding options turnover:

I have read the previous comment regarding the turnover for shorting (and covering) option.

My query is regarding turnover for going long on options (3 cases)

1) If suppose I BUY one rcom 100 ce (lot size 4000) at 3.00 and SELL it a week later at 4.00, then
I RECIEVE premium on sale worth 4*4000 = 16k and the difference (profit) is 1*4000= 4k.
Hence turnover is 20k … am I right?

2) Also in that case, if I buy it at 3.00 and sell it for 2.00 then the turnover is lesser than the above case, since then,
Premium received on sale of option is 2*4000 = 8k and the difference (loss) is 1 *4000= 4k
hence, turnover in this case is only 12k?

3) if I buy one lot of rcom 100 ce at 3 and it expires worthless (no sale after buying it)
then, is the turnover ZERO? (because no sale of option was done, and since no sale was done, there is no profit or loss)…

Sir can you please answer each of these 3 cases for going long on options separately and clarify what the turnover in each case would be?

Thanks a lot for the great help…
Sharan

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