Hi Experts,
I have shorted one lot of balkrishna and also shorted in money option .what if i will not exercise both the position and let them expire ?
I mean what will happen if June future expire below my shorted price ?
How will unexercise shorted option and future be taken care in settlement …
Thanks in advance
Maybe this could of some help to you https://support.zerodha.com/category/trading-and-markets/margin-leverage-and-product-and-order-types/articles/policy-on-physical-settlement
Thanks Brother!!..my half of the query is answered by that article…that there will be net off and there will not physical delivery of stock…
But do you know how will be settlement happened?
For expample :-
I shorted balkrishna @1120 future price and also shorted 1200 strike put 90…what if balkrishna spot closed @1130(LTP) and future expired @1120(LTP) and 1200 stricke put expired @ 85 (LTP)…
If you’re talking about P/L of the trade then your P/L on futures contract will be 0 while your short put will make 5*800 = 4000. So your Net P/L will be 4000 (- Brokerages) from this trade.
So,basically settlement will be done on last trade price or on settlement price,correct?
Settlement is done on settlement price, not LTP. The settlement price is calculated based on weighted average price of underlying for the last 30 minutes.
Also read this post to know how final settlement price of ITM Options is calculated Option expiry price calculation
it is same as the closing price ! am I right ?
No it isn’t,
what is the difference between settlement price and closing price ?
which is more accurate for the technical analysis ?
pls see the historical data on the below link .
https://www1.nseindia.com/live_market/dynaContent/live_watch/get_quote/GetQuoteFO.jsp?underlying=NIFTY&instrument=FUTIDX&type=-&strike=-&expiry=25JUN2020#
I find NO difference between the settlement price and the close
price !!!
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That is the exchange policy, now why do they do it when difference is none to very less, can’t comment on that.
Thanks Bro!!