Difference between Settlement Price & Close Price

F&O
1

Assume that I bought below options and let it expiry

  1. 1 lot of BANKNIFTY 28200 CE for a premium of 10
  2. 1 lot of BANKNIFTY 28300 CE for a premium of 5

On expiry BANKNIFTY closed at 28320. But NSE settlement price for both the options contract shows 0.

28200
28200581×518 26.8 KB



28300
28300579×511 26.2 KB

Could you please help me understand

  1. Options settlement.
  2. Difference between Close Price & Settlement Price.
  3. Profit/Loss on above positions.

Thanks!

Tagging @nithin

2

Can go through this

Can check this

28300 call will settle at 20
28200 call will settle at 120
As these are expired ITM, high STT will be there which is already discounted in closing price. Also I believe NSE has not yet updated settlement price yet at that time.

1 Like
3

I have been wonder about this for a while now too. have not really gotten a satisfactory answer from various searches. the NSE site has this to say.

What I “think” it is, is that say OI is 200,000 @ rs, 2.00 . A person comes in and for what ever reason sells one lot, (say a lot is x1000) at Re. 1. Then it wont be a fair price for rest of the holders, in this case 199,000 OI holders to lose half their portfolio value due to a single trade.

hence NSE has a way for computing the fair price