How much will be my loss in this case

F&O
1

I have below positions in Adani ENT. Say suppose I do not close my position, what will be my profit/loss?

Short Adanient P.E 3900 at premium of 30, 1 lot (250 shares) Dec month expiry
Short Adanient C.E 3900 at premium of 14, 1 lot (250 shares) Dec month expiry

Say suppose the at the end of expiry Adanient price is 3800.

Note: I don’t want to take the delivery of shares or take the delivery of shares.

2

Assuming expiry @ 3800

Loss in 3900 PE will be 70 rs (100-30)

And gain in 3900 CE will be 14 rs (full Premium).

Total loss = 56*250 (1 lot)

3

thanks. I dont need to take or give delivery in this care right?

4

Short PE = bullish position.

You’ll have to take delivery of 250 shares.

5

If your option position enters ITM, you will have to take delivery.

6

But I have CE position also which I have not exited. Will it not get adjusted with it?

7

CE is expiring worthless, so it can’t be adjusted.

If you had both ITM CE and PE, then the positions would be adjusted. In this case, you would need to have a 3700 CE which would expire ITM based on your hypothesis.

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8

thanks so how much would be my loss if I had below positions

Short Adanient P.E 3900 at premium of 30, 1 lot (250 shares) Dec month expiry
Short Adanient C.E 3700 at premium of 80, 1 lot (250 shares) Dec month expiry

Say suppose the at the end of expiry Adanient price is 3800.

9

@ShubhS9

10

You’d have a loss of Rs.90.

And since, both options are ITM, the delivery obligations would be netted off.

11

At 3800, the 3900 Call Option will expire worthless and you will get to keep all the premium received.

The 3900 Put Option will expire ITM, and you will have to take delivery of the shares. Here too, you will get to keep the premium received at the shares will be delivered to you at the strike price ie. 3900.

For net-off of physical delivery obligation, both positions have to expire ITM. In the above scenario, only one is expiring ITM while the other is OTM. Hence, it’ll be physically settled.

12

Right. I wanted to know in case of below

Short Adanient P.E 3900 at premium of 30, 1 lot (250 shares) Dec month expiry
Short Adanient C.E 3700 at premium of 80, 1 lot (250 shares) Dec month expiry

Say suppose the at the end of expiry Adanient price is 3800.

13

Only can you specify the options physical delivery net-off of rules?

14

In this scenario, as both the options are expiring ITM, the physical settlement obligation will be netted-off. Your loss in this trade will be Rs. 90 * Lot Size, as @Suyash.K already explained above.

The below table explains the net-off scenarios;

image

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15

thanks @Suyash.K @ShubhS9

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