You don’t have to subtract premium paid while using brokerage calculator. It calculates everything and displays you the net P&L.
so, what is net PNL ??
You said, net PNL is 7650
My bad, should’ve been more clear 
You’ll have to multiply 7650 by lot size which is 25 for Bank Nifty. So the total would be 191,250 (minus brokerage and other charges).
Also, in the above screenshot you’ve entered sell value as 8350, you’ll have to enter it as 8000.
Thank you,
One last question,
Can we buy options for March,
This is Feb, can we buy options for march expiry monthly, march OTM
How far we can buy for the month of march, not Feb,
Yes you can, and you can buy Options of any Strike Price.
If I buy future in bank nifty at 29000 and at the same time I buy 1 PE at 28500 PE monthly PE, will there will be margin shortfall issues or peak margin penalty during the entire month
If you are maintaining sufficient margins, there will be no issues. You can check the margin requirements here, and also on the Basket Order window.
I think you did not understand my question,
I am buying both future and PE to together, margin maintenance is not required if we have combinations of future and PE
For example future at 29000 BUY side and 28500 PE at 350 monthly PE
Even if you’re hedging your Futures position by buying Option, you’ll still have to maintain sufficient margin, though the requirements will be low. You can check the margin requirements here.
I think you need to correct yourself first,
For example:
Bank nifty Future at 29000 , margin required is 1.5 lacs
and it goes down, to 1000 points,
Then the margin shortfall is -1000, but you already bought 28500 PE, your PE increased when future price decreases,
Total margin required to 1.5 lacs to buy future + price of 1 PE, this is one time investments until your PE expires, if PE expires, you need to renew or buy another weeks PE to balance the position.
If you are new to markets maybe you should try to read more and place small orders and check in real for better understanding.
Futures has something called as marking to market, means daily profits and losses are settled for next day, so when futures has loss and options has profits it won’t make good till option is closed as options don’t have marking to market. One need to bring in losses for futures otherwise your account will go into negative. Can check this for more.
Also this is a hedge strategy so margin required would be much lower than combined, can check margin on kite baskets here.
How to buy out of the money call or put options, if those are under restrictions, we need those out of the money call or put for hedging purposes
Hi,
Assume I dont square off my position for following ITM options. what will happen?
a. If I have bought ITM calls option. Then will I automatically get delivery of stocks (assuming I have cash margin available in account)? Also what will be my buying price? Will it be same as strike price? Will I have to pay any brokrage/STT on option squared-off or any extra settlement charges?
b. If I have sold ITM CALL options. (Assuming I have same number of stocks available in my holdings). On expiry will I face any penalty or it will be simply settled against the stocks I am holding? Selling price of stocks settled would be?
Yes, if your Option position expires ITM, as buyer of Call Option, you’ll have to take delivery of underlying shares.
Shares will be delivered to you at the Option Strike Price you hold, the same will be your buy average.
You can learn more about physical settlement and charges associated with it here.
Upon expiry, as you are holding ITM Short CE, you will be obliged to give delivery of underlying shares. You need to have shares equal to lot size in your account for delivery or it’ll result in short delivery. You can learn more about short delivery here.
The selling price will be at the strike price you’re holding.
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Dear nitin sir,
I have one question can please help me out
If market was 14300 i sell ITM 14000 CE at 400 and then market expired 14350
In that case if I don’t square off option(dont buy)
Then what is charges and stt i have to pay…
Is any penalty i have to pay ???
The STT of 0.125% is applicable only for Long ITM Options, not for Short positions as you would have already paid the STT when you took short position.
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Ok sir,
Please help to clearfy that so if i don’t square off my short positions then amount automatically deducted from my account as for auto square off as final intrucik vaule
And any penalties charges or deducted if i let it my short positions auto sqaure off which is in the money.
option
Please reply
There are no auto squared-off charges. If your position expires ITM, brokerage charge will be applicable.
There is no penalty for letting your position expire.
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Does brokerage charges apply to ITM expired Index options also ? (I think brokerage should not be applied in this case as we have not squared off and there is no physical delivery in Index options.)