Physical delivery query

Hi , Just assume these positions , just all are for example

Fno stock " A " , price in current expiry is 1000 , and lot size is 300
same stock " A " ITM 900 CE current expiry price at 20 rs
for example , the current margin req after margin benefit is near 1 lakh

If i bought stock Future at 1000 rs and sold 900 CE at 20 rs
At Expiry if the stock remains abv 1000 or till above 900 ,the CE is in ITM ( ie CTM )

for the above situations , im having the queries or i want to cross check my understandings right ,

  1. There is no need to physical delivery at expiry if not squared as Future long and ITM CE short leads
    to Nett off delivery
  2. The margin requirements at last wednesday and thursday of expiry would be 50 % of lot size , ie near 1.5 Lakhs ( 1000 * 300 = 3 Lakhs and 50 % of lot size is 1.5 Lakhs ) or near approximately 2 Lakhs after margin benefit for hedged CE short 2 nd leg margins if added

These are netoff scenarios

The margin requirement for last two days of expiry is increased by twice the regular margin requirements.

You can read more here.

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Thanks and here in the netoff scenarios , 1 st leg Future Long and in 2 nd leg either Short ITM call or Lomg ITM put , right ?


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These margin are levied by exchange themselves right. Also does this take account the spread benefits i.e suppose long future and long put or bull/bear spread etc.
for eg say if margin for required for bull spread is 30k then it would be 60k on wednessday or the benefits would not be accounted and both legs would be counted as sperate.

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You will continue to get margin benefits but margin requirement will be increased like you mentioned.

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@ShubhS9 what is brokerage charged if positions are netted of in case of psysical settlement.

Brokerage for netted off positions is 0.1% of contract value.

suppose i have short call at 310 and short put at 320 and stock at 315, assume lot size to 100. Then will it be 0.1 % of (310+320)*100 or something else.

Notional value of options is calculated as [Strike + Premium * Lot Size]

On your given example calculation will be as follows: 310+5 * 100 = 31500 for Call and 320+5 * 100 = 32500.

So brokerage will be charged 0.1% on 64000.

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also in above case the premium debited from my account would be 5+5=10 , so total outflow would be 10+transaction costs without STT . Correct?

5+5 * Lot SIze plus Brokerage and other charges. Since your position is short, you have already paid STT.