If I have credit spread in Nifty and both are itm and I let it to expire. What will be my maximum loss? Will there be any slippage? How the oi are settled?
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The Index F&O are cash settled. As your option has expired ITM, itâll be settled at the intrinsic value.
The difference between the price at which youâve sold/bought the option and settlement price will be your P&L.
You can refer to this chapter on Varsity to know how intrinsic value calculations for Call and Put options work.
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So there wonât be an issue of illiquidity? Many times because of illiquidity there is huge loss. So I can buy even 50 strike price also? And deep itm also will not have issue?
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If you are letting them expire ITM then there is no point of illiquidity/slippage or 50 strike, deep ITM etc, as suggested by shubh above please read that varsity chapter.
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If I buy FEDBANK share âš65 today, and sell tommoro at70.10 7%+ profit I will incur any penalty ?
You can do BTST, there is no penalty applicable.
However, there are some stocks where additional margin is levied by the exchange, for such stocks, if you donât have sufficient funds, penalty will be applicable. More details here.
Also, do check this article to know risks associated with BTST.
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Is it possible to buy 36500 PE and 34500 CE together, As it does not come under
No broâŚthat most likely wonât be possible in zerodha unless accompanied by shortsâŚ
@ShubhS9
Is it possible buy options for positional trade in NRML for two months, for example: Buy 36000 PE for Aug or Sept.
Yes, you can.
This restriction is due to member level OI limit. You can learn more about this in detail here.
However, if you hold a short option position, you can buy options at any strike price for hedging, to the extent of quantity shorted.
I do not want to short any positions, I want to buy cash positions and hedge with and buy options for 2 months??
I only want to secure my cash positions with option buy with hedge
If the strike price youâre trying to buy is outside the allowed range, you wonât be able to buy.
It means important options are not buyable, so it is worthless to invest in options
Which cash position you mean here?
Bank nifty stocks like SBI, ICICI, and Axis bank cash positions. I want to hedge them with ITM options 36000 PE
Sir
If i buy USDIND CE 74.25 @ 0.485 as premier what happens if i am not sell it on expired!
As its an IMT and nrml
Do i get some profit (at expiry its trading at 74.9 @12.30pm)
Or i get sqr off with some loss
Or something else.!!
Plz sprr ur time for clarifying it pa-!
ITM option will be settled at intrinsic value. If the settlement price for USDINR is 74.9, your 74.25 CE will expire with intrinsic value of 0.65 (Settlement Price - Strike Price).
As you bought this Option at 0.485 and will be settled at 0.65, youâll be in profit of 0.165 * Lot Size * Number of Lots.
For one lot your profit will be Rs. 165.
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