Airtel stock is at 1427 as of today. I am planning to take delivery if it comes to 1300 level, hence, I am selling 1300 PE for June 2024 expiry @ Rupees 0.95. Assuming the stock came to 1200 on the end of expiry day, are my below points correct?
I get to keep 0.95475 lot size = 451 rupees
Stock will be assigned to me and I need to pay (4751300)=617500
Since the stock went more ITM, there may be premium increase than the price of 0.95 I sold, assuming it to be 4 rupees. Should I also pay (4-0.95)*475=1448?
Hi @Mahesh2020, correct you will keep the premium of Rs 451 upon expiry and will have to pay 6,17,500 on physical settlement. Add to it, the contract note charges and brokerage of 0.25%(.25%4751300) which would also be applicable.(As per Zerodha for physical delivery).
You won’t need to pay anything else on delivery no matter how deep ITM your position becomes, as you will anyway be buying at Rs 1300 while the market price would be 1200(You are buying Rs 100 higher than the close price of Rs 1200 as per your example).
But do maintain the complete margin in your account as the requirement would increase on the expiry day.
