I have a few clarifications regarding physical settlement. Maybe useful for other traders as well:
- What happens to Nifty and other indexes. Is it cash settled? Does it require higher margin in last week?
- What is the increasing margin policy? Does it increase starting Monday on expiry week (40,50,60,80), or is it applicable only on the last day?
- Let’s say I am holding 1 call option of Asian Paints (600 shares) and 1 put option of Asian paints (600 shares), both CTM but not deep OTM. How many shares do I need to keep in my account for you to not square off my position? Is it 600 or 1200?
- Do deep OTM options require me to maintain shares in account? Understand the need for margin but are shares needed?
- If you deduct shares from my account as part of physical settlement, how much brokerage will I be charged?
Best Regards and Thanks.