Physical settlement of FNO in short CE

F&O
28

No issue…thanks for being straight fwd. I am still not aware of many issue and i know my mistakes very well but still failing to follow rules and disciplines. Had many big losses due to few issues

Yes you are right its fait value was less so i thought it will get execute at lower price and i failed to closed trade. I should have closed all in afternoon

Going to stop stock option trading completely and will buy for lokg term only luckily last momth very well in stock optin trading may b overconfidence cause this isse.
Any way will take precaution from next time.

I hope i will get hindalco in 1-2% range…
Thanks you very much once again.:slight_smile: really appreciate :pray: it

1 Like
29

Hey his Skrike price is 565 and the closing price is 567.7, which is very near.
Will he not get an option for cash settlement first since the closing price is near the strike price? I had read for near 5 strike prices, the person will get an option for cash settlement i.e (567.7 - 565) * no of lots

@ShubhS9 Can you please help here?

1 Like
30

The Do Not Exercise facility was discontinued by the exchange after introducing net settlement facility. Have explained about it in detail here: Net settlement of trades across cash segment and F&O segment upon expiry of stock derivatives

31

That’s sad. So his max loss can be up to 25% right? (considering charges + brokerage)
@ShubhS9

32

Also, will get 17,780 Rs as he is a seller (1400*12.7)?

33

Yes…but hubdalco is highly liquid stock so i feel thr wont be much issue. But i have never seen auction data so not sure. Only on monday i will know price hope it willl be close tomkt price

34

Hey, I have been actively participating in the auctions markets and what I have usually seen is that the final settlement price in auction markets is very close to the market price at that time. So, lets say if hindalco trades in market at a price of 575 during the auction then its likely to be settled near 575-585 in the auction markets (as its highly liquid). Being said you don’t have to worry about paying 20% higher than the market price

2 Likes
35

Thanks shivansh…yes same thing mentioned by dcd.
I am fine with 1-2% here and thr…may be hindalco will move up and cangive profit as well
And yes i was woried about 20% …but after replies from you guys…quite relief now and yes have to avoid such cases in future…

36

Yes. The premium received from selling options is credited to the account on the day the option is sold.

37

Thanks for explaining this with utter patience and depth, I was going thru the thread it was a learning for me as well :slight_smile: @Pai

1 Like
38

did you get it settled bro? how did it go…can you share the update

39

No not yet…hindalco closing price yest and today as well is almost same…hoping auction price wknt be more thab2% but u dnt have any idea initially i was assuming 20% but thats not case as said by few other member as it is nifty stock

Will.update once i get stocks

40

FYI guys
i received contract note and as per it i received shares at - 581
not good experience guys i will say avoid stock trading in last day or stop it completely in last 3-4 days :frowning:

41

Difference of 2.5 % not big it was unnecessary closing on same day would have save good amount

42

Yes…at 582…
One should avoid trading on last day…lost 40k+ unnecsaary

43

This was your last post , still you are doing the same thing :thinking: Lost 40 lakhs till now in trading

1 Like
44

well i wont say no but luckily improved a lot…: have understood few things.not able to fix all issue completely …no profit in this year but in good shape

1 Like
45

Well , hope you do well in future , also trade with Hedges :slightly_smiling_face:

1 Like
46

Thanks and wish you the same…
avoiding many mistakes started hedging… that is really helping.
but yes doing few mistakes which are costing big on trending days…thinking market will remain same.
heavy trades, heavy selling still cost me sometime…will work on avoiding such mistake completely

47

Well explained! so far the simplest and most understandable explanation of physical settlement.