I have a doubt with regards to physical settlement of Stock Option contract.
Assume I bought two lots (1010 shares) of Reliance 2200 CE on Monday the premium is some 50 assume.
On Monday to get into the call option position contract I need to pay 1010*50 as premium.
Assume I kept the attribute as MIS and booked and exited the contract when was say 52 within Monday.
Since I exited the contract in the money and much before expiry do i need to account for physical delivery of stocks n or any other penalty…
I know NRML attribute while option booking is for carry forward of option position, so if I carry forward the call option do I need to pay any extra charges or maintain extra margin? Or the initial premium deposit to get into the position is enough?
If I exited the contract three days later with a profit in premium does physical delivery happen.
Query - 3
These stock option positions can be exited like index contracts rights but can anyone please what I shud do go avoid physical delivery of shares or when physical settlement exactly happens?
Sincere Thanks and Regards…