According to the NSE website, in case of bonus issue, for options, only the lot size and strike price will be revised based on the adjustment factor. Only for Futures, the price will be adjusted.
However, I see that in my Zerodha positions tab, the price of options sold before the ex-date has been adjusted. The option that I sold for around Rs.5.1 before ex-date is now showing an adjusted price of 3.85 today.
What would happen to the difference of about Rs. 1.25 premium received earlier for writing the option before ex-date? Will it be debited back from my account? @nithin@siva
Roy, we’ve taken the Adjustment factor as (1+3)/3 = 1.3333 from this circular.
The change in price wouldn’t affect you much. Since there is a change in lot size from 4000 to 5333, if earlier your average price would’ve been 5.1, you would’ve received a premium of around 20400, now the price will be adjusted to 3.85 so the premium value will be around 20,532.