Query Regarding USDINR Settlement Process

Zerodha
1

I have buyed USDINR 29th MAY 75.75 PE at Buy Price 0.1342 with 30 Qty. The option LTP is 0.0500 . The Contract Expired with the value of USDINR @ 75.61 . However, as per the LTP it is showing a loss of Rs. -575 . I want to know exaclty whether I am in loss or profit due to it. Also, want to know when and how the settlement will be done.

Thanks.

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2

u r in loss of 0.14 per lot (75.61-75.75)

3

But i have buyed put option as i have predicted that the rate will be below 75,75 , And so when it is 75.61 the time of expiry so isn’t it profit as my prediction is right?

4

Yes. It should be profit

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5

Since you let it expire in the money, wait for the final settlement price.
It should be more or less the same

I don’t think you have made any profit or loss.

6

29-May-2020 75.6369

This I believe is the final settlement rate for May.

7

So according to the price the profit will be 75.75-75.6369*30(units)*1000 = 3393 ?

8

but your Buy Price 0.1342 > 0.1131 so you will not make a net profit.It will be a loss of 0.0211* 30 *1000 + taxes.

1 Like
9

When trading options you have to also account other factors that affect option price, it’s not just underlying price that moves options price. When you buy options you are exposed to theta decay, as time progresses your option loses value.