Comment on Basics on Options Shorting/Writing
commented on
16 Aug 2015, 07:01 PM
If the trader does not square off his ITM option position and settlement is done by exchange on expiry day, then in that case, is there any brokerage by Zerodha? For example, if nifty is at 8500 on day-1 of the month and I sell a lot of CE_8400 option for Rs. 250*25 and give brokerage of Rs.20 and margin money. On the expiry day nifty reaches 8420 and my sold option has a value of Rs. 20*25 which I don’t buy. After exchange settlement, I get a profit of Rs. (230*25 – Brokerage – STT). What is the brokerage in this procedure of exchange settlement?