What is the price used for settlement of options that are ITM, I know its VWAP of the futures contract for the last 30 min right. But what happens for weekly options then?
can some one pls answer this.
For call option:
stock closing price - your strike price = settlement price
so if you bought reliance 1300CE and stock is at 1400, settlement price will be 1400-1300=100rs*Lot size
For Put option:
Your strike price- stock closing price= settlement price
so you bought rel 1300PE and stock closes at 1200, 1300-1200= 100rs *Lot size
I don’t think you are correct the settelement price is not the close price. It is the vwap of the last 30 mins. @nithin please clarify. Which vwap is it during weekly contract expiry?
Spot close price is used to settle weekly or monthly options on expiry day.
I din’t understand it, can you give more info on this, please.