Hi,
I sold suntv OTM PE at 73 with one lot(1500) Now bidding prices is 130. Current price is 85
What if i have not closed my postion before 3.30pm in the expiry day?
How much is the loss and fine @Zerodha platform.
There are quit number of feedback and answers are already available on this topic but still requesting some more clarity. Just want to know better clarity.
As the stock delivery happens at the strike price, Exit price is taken as zero.
For example: lets consider, you sold 700 PE suntv at 73 and it expired at 90 (at 610 spot)
You will receive the delivery of the stock at 700 as cost price - As you have already received premium of 73 rs before, the overall net loss after delivery will be 17 rs if the stock is at 610.
Some more points to be considered in your case:
As it is a short pe position, you would be required to take delivery of the stock if you decide to hold the position.
The margin requirement for all stock futures and short options contracts increases on the expiry day to 50% of the contract value or 1.5 times NRML margin (whichever is lower).
As you are obliged to take delivery here, Holding a “take delivery” position post expiry without sufficient funds in the trading account will lead to the account going in debit. An interest of 0.05% is charged on the debit balance. This can also mean that the stock will be sold by our RMS team to make good of the debit balance in the account.
Brokerage of 0.25% of the total value of physical delivery.
You can read more about physical delivery here: What is Zerodha's policy on the physical settlement of equity derivatives on expiry?
Thank you for your reply.
I dont have sufficient funds to buy the stock. In this case what is the loss i have take.
I sold SUNTVJAN750PE at 73 and its tranding at 84.
So my loss will 750-73= 677 * 1500 ?
If i have to take delivery i should have 677*1500= Rs 1,015,500 ?
Sorry for basic question, i used to square off my postion 3rd week but not able to liquidate since its deep OTM.
Now Ask price is 130.