nifty at 11400 and lot size 75
long at 10,000 call, premium paid 1438
long at 10,100 call, premium paid 1340
short at 10,050 call, premium received 1194
If I left this positions open and do not close it even after expiry day, what will be the total charges + penalty I have to pay on these positions?
if, nifty expires on below different prices
For Long positions, if you let your position expire ITM, there is additional STT charged at 0.125% on the Intrinsic Value the Option.
For Short positions there is no additional STT and you already pay the STT when you take Short position.
At 11400, your 10000 CE will be ITM by 1400 points, so the additional STT charged will be Rs. 131.25 (1400 * 0.125 / 100 * 75).
At 11400, your 10100 CE will be ITM by 1300 points, so STT will be Rs. 121.875.
No additional STT on 10,050 CE as this is Short position and STT is already paid.
You can do the math for remaining two by following the above explained method
Thank you @ShubhS9 for prompt reply,
I just wanted to confirm, after a budget announcement, STT levied on premium and not on contract value right ?
is there any other penalties in this case?
Yes, now STT is levied on Intrinsic Value of the Option, not on the contract value. Also, if your Option expires OTM, there is no additional STT as it expires worthless.
No, there are no other penalties.
ok, I got confused, after reading this post if it’s under your authority, pls modify it.
Thank you, Appriciate quick response
There is following note at start of the article.
Oh sorry! I didn’t noticed that