Query regarding GOLDM

Commodities
1

If I buy GOLDM 79000 CE @500 premium.

what will profit and loss per INR and what is the maximum loss in GOLDM option ?

2

GOLDM lot size is 10. So if premium is 500, max loss will be 5000.

3

all the contracts get physically settled or only ITM ?

4

Only ITM

5

when should I square off GOLDM option position to avoid settlement ?

6

You will get notification from the broker if you have an open position.

7

I am holding GOLDM 78000 JAN PE ( EXPIRY 27-01-2025)

GOLDM FEB FUT trading at 79176.

when will zerodha block additional margin ?

8

On the options contract expiry date, all open ITM options contracts will be devolved into futures. The exchange blocks a margin equivalent to 25% of the futures margin required to hold the ITM option contract 2 days before expiry and 50% of the futures margin 1 day before expiry, and 100% of the futures margin for involvement.
Read examples and more details here
What is devolvement for commodity option and how does it work?

9

Does GOLDM FUT contracts are physically settled ?

10

GoldM contracts are physically settled.
Some commodity futures contracts are cash-settled whereas some are physically settled. You can check the settlement type and the last dates of trading commodity contracts in Zerodha in this sheet

11

Commodity futures contracts can be cash or physically settled. However, Zerodha does not allow physical settlement. If the positions are not closed before the start of the delivery period, Zerodha may square them off, and â‚ą50 + 18% GST will be applicable for each auto-squared-off order.

Can you update this support page.

12

We don’t allow physical settlement. If the positions are not closed before the start of the delivery period, Zerodha may square them off, and ₹50 + 18% GST will be applicable for each auto-squared-off order.

13

I just asked you this and you said it is physically settled.

14

@bharat1080 If i understood the support page and the above messages correctly,
even the contracts where “physical settlement” is supported on MCX,
Zerodha does not support physical settlement. Some other broker(s) might? :thinking:

Right @Deeps ?

1 Like
15

It was confusing, thats why I asked this on tradingQNA.

1 Like
16

Can we setoff commodity and equity FNO P&L against each other ?

Does commodity FNO profit also consider as business income ?

@Jason_Castelino @Quicko