Premium Difference in physical delivery

#1

when trading in the mandatory physical delivery list
Let’s assume cmp of the scrip is Rs100 and I sell a put with a strike price of Rs 80 and i received 1 rupee as premium today
now,
During the expiry day
strike price got hit , price is cmp of scrip is 79 and premium LTP was Rs 10

if i do nothing and ready to take physical delivery
Do i have to pay for the Premium Difference Also?
how much do i have to pay?

#2

bump!! anyone please answer this

#3

@mark255,

The intrinsic value of the contract will be Rs 1 on expiry(Strike Price - Spot Price). You will receive the shares in your account as it is a short put position. Your effective buy average will be Rs 78(Rs 79-Rs 1 premium).
You can read more on how physical delivery works here.

1 Like
#4

@mark255 u have let the short put option expire without squaring off. Now why the premium ltp price of that put coming into picture here?

U will retain ur 1 rupee premium but have to take delivery of the stocks at strike price which is higher than cmp