I made profits from option selling but it's not reflected on funds

So I made profits from selling nifty 50 options of November 7 expiry and October 31st expiry. I sold them yesterday. I made around 5 k, but zerodha funds statements are showing that it deducted around 2 k for net settlement obligations. And the 5 or or any amount is not showing at all. Am I missing something here? Because PnL is showing profits. I am new to option selling. I sold naked options. So I am trying to clear things out.

Hi @Abhijit_Bhadra

When you are selling an option first, you will receive the premium immediately, which is added to the fund balance. So when you will close this position, you are buying an option hence you will have to pay the premium.

For e.g. You sold an option first with a premium of Rs 100 - Qty 50. You will receive 5000 which will be added to your fund balance.
Lets say, you want to exit this position and premium is Rs 70 - Qty 50. You will have to pay 3500.
Your Profit will be 5000-3500 = 1500.

I hope this helps, you can also create a ticket from our support portal to assist you on the same with your case.

1 Like

Yes it clear things up. thank you.