Cash secured put

F&O
1

Please confirm on this part
Spot of Tata motors is 150
if I do cash secured put keeping mind at 135 strike price for premium approx @5 if suppose market went bearish and Tata motors reached 100 so my premium for sell put 135 strike will be approx 35

if I have sufficient funds to buy the lot and take physical delivery so in my demant I will get the lot at rates of 135
but on expiry do I have to bear the 35 premium loss

Please explain this with an calculation wat will be amount debit on my account on expiry day

when I am read to take the physical delivery

account will be debit for 135 * 5700 lot size and also for loss of 35* 5700 premium

2

strike price of sold put = 135
premium received = 5
closing spot price on expiry = 100

so u will get the shares @ 135 in ur demat.
the premium received @ 5, u will keep it.

so technically you got shares at 135 - 5 = 130 in ur demat.

now ur loss of delivery shares is 130-100 = 30 rupees.

30*5700= 171000

this should be the actual calculation.

3

u will save 5*5700 = 28500 which u received as premium…

plz correct me if i m wrong…

4

What are the extra chanrges (STT and all on taking delivery of ITM sold pu option.)

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