I am trying to calculate the turnover for F&O trading, and my strategy involves buying cheap out of the money options which almost always expire worthless. How would the turnover for taxation be calculated in this case? Would it be
zero, or
the option premium, or
the option premium + the loss, in other words {option premium + (option premium - 0)}, which is 2xOption premium?
Thank you so much for helping me. I just noticed that Q in Zerodha also calculates and shows turnover for F&O. Right now I can see the turnover to be equal to the option premium - the second option that I mentioned. You can also see that in the screenshot below:
This corresponds to the options that I purchased but did not sell as they expired worthless.
So is Zerodha’s calculation of turnover incorrect?