I am not sure what SEBI is getting by keeping this rule, but we retail traders are loosing heavily. Over the last five years I used to make some money on last four days and even the losses used to be minimal. Most of the reatil might be the case. With this new rule and most brokers not allowing to trade on the final four days is killing retail traders,. Finaly it will kill the broking firms too.
I am pretty sure 50 percent more revenue for zerodha comes on the last four days, compared to initial trading days.
When this rule is going off… ?
If not why can’t zerodha allow to trade in these scripts ?
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u mean bank nifty? ya that sucks
No… it’s stocks…
Deep in the money or at the money? i managed to buy at the money on maruthi
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and yes compulsory physical delivery only hurts retail traders. Their reason was it will stop big hands from moving the market at their favor during final hours of expiry, which is stupid. These big hands have lot of money, they will just gladly accept physical delivery and sell it next day even 1 or 2 percent loss because they already multiplied their money in derivative market by moving the index and stocks at their favor.
but for retail traders expiry week is golden opportunity to make good money because of cheap premiums, but it stops us from holding the option once it goes in the money.
If SEBI really wanted to help they have every client record, they can pinpoint who abusing the market and ban them. With this SEBI just telling us, hey we reacted to your complaints and made changes by nerfing you profit making but we cant go against big hands they have political power etc etc…
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THIS IS THE PRECISE REASON in my understanding which is killing the market . 4 days is non investor friendly attitude of broker but why even 1 day or 2 day in advance ? what is meaning of expiry date if brokers put such restrictions.
If i buy tcs future with one broker and sell same with the other broker ; and if both the positions from the respective brokers goes for the physical settlement on expiry;;; my net would be zero !
Because with one broker i was long buy and with the other broker i was short sell .
So ; net obligation comes to zero .
Am i right ?
Do we have physical delivery concept for Indexes as well ie Bank Nity/NIfty index
No. Index F&O are cash settled.
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Hello @ShubhS9,
Please consider my query.
I have a buy call option (ATM) and to hedge it I have sold a higher strike (OTM). What if both become ITM on the expiry. Do I have to take and give physical deliveries or it will be considered nullified by the exchange.
eg. I bought 500 Call option and sold 520 Call option. On the expiry the underlying asset market price is 600.
Thank you
Its net off bro…no delivery
The obligation will be netted-off as both options expire ITM. You can check out this post for more information.
Thank you so much.
So as per this post neither I am liable to take/give physical delivery nor short delivery/ maintaining margin cash penalty will be imposed. Right
Right.
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Thank you
I am just curious if I’m not liable to take an d give the physical delivery how about the my counter part seller/buyer?
will he/she also not be liable to take/give the physical delivery? How about the penalty?