In Yesterday’s Expiry, I purchased 1 lot of IDFC June [email protected] and sold 49 CE @0.80. IDFC Closed at 49.15.
When I checked PNL Report, it was showing Rs. 3500 loss in the future leg and profit of Rs. 8000 in the Call option. But the profit in Call Option should be Rs. 6500 according to me (8000-1500). Please clarify on this if I am wrong in my calculation.
Also, what will the charges/brokerage charged by Zerodha in netting off this position.
Thanks
Stock options expire ITM but at 0 value. So as an option seller you will get to keep the entire premium received (0.8 * 10000 = 8000).
For all netted-off positions(spread contracts, iron condor, etc.), the brokerage will be charged at 0.1% of the physically settled value. Also, STT will be applicable on the long position( as this is treated as notional delivery.
Please check out this support article for more details.
please correct me if I am wrong. As far as I understood, if I sell deep ITM Call and buy future at same time, then will I keep the entire premium? For example, in this July expiry, if I buy Reliance Futures and Sell 2000 CE, then will I keep entire premium at expiry?