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[anildnr]

If u short sell and kept it open..then nothing will happen even it is itm...only if u buy and keept it open and if they are itm then only stt impact will be there..

Anybody can confirm if my thinking is wrong

 

[VJAY]

Anybody can confirm if my thinking is wrong

IMO yes ...stt impact only for buyer of call/put which is expired ITM

 

[govindheg]

If u short sell and kept it open..then nothing will happen even it is itm...only if u buy and keept it open and if they are itm then only stt impact will be there..

Thank you.

 

[govindheg]

Hi guys,
Hope some one clarifies my doubt regarding expiry day accounting entries in respect of not-closed option.

On 24th May, there was problem in NSE’s NOW software. (It was a big news that day). I could not exit nor put s/l in respect of my
Buy BN 25800CE 80 @ 22.33
Closing BN @ 26016.80
Closing price of option: 132.90
Ultimately I had to leave the option un-exercised.

And pl see the attached screen shots of my broker note & NSE’s closing price of that option.

Is the calculation correct?
Thank you for your time.
Regards
Govind

 

[amrutham]

On 24th May, there was problem in NSE’s NOW software. (It was a big news that day). I could not exit nor put s/l in respect of my
Buy BN 25800CE 80 @ 22.33
Closing BN @ 26016.80
Closing price of option: 132.90
Ultimately I had to leave the option un-exercised.

Did you buy/sell the 25800CE contract?

What was the closing price charged for this contract as per your contract notes? Its not very clear from the image.

If you have sold this option and broker has exercised it, then your debit should be ( BN closing price -25800 )*80. Its not BN LTP, but its closing price.

Here STT is not applicable,since its buy side..

 

[amrutham]

Anybody can confirm if my thinking is wrong

You are 100% correct .

 

[govindheg]

I had sold 2 lots
They charged me as under
Debit :80*26016 - 80*25800=17344
And credit of 80*22.33= 1786
Net debit 15558

Here I was expecting 132.90-22.33*80=8845.60

Excess Rs. 6713/-

 

[amrutham]

I had sold 2 lots
They charged me as under
Debit :80*26016 - 80*25800=17344
And credit of 80*22.33= 1786
Net debit 15558

Here I was expecting 132.90-22.33*80=8845.60

Excess Rs. 6713/-

Unfortunately in this case, debit of 17344 is correct. Option exercise price is based on BN closing price(26016). Its not based on LTP of the option/LTP of BN.

 

[TraderGYO]

Hi guys,
Hope some one clarifies my doubt regarding expiry day accounting entries in respect of not-closed option.

On 24th May, there was problem in NSE’s NOW software. (It was a big news that day). I could not exit nor put s/l in respect of my
Buy BN 25800CE 80 @ 22.33
Closing BN @ 26016.80
Closing price of option: 132.90
Ultimately I had to leave the option un-exercised.

And pl see the attached screen shots of my broker note & NSE’s closing price of that option.

Is the calculation correct?
Thank you for your time.
Regards
Govind

Question to knowledgeable traders - was legal action available in this case where the platform itself had broken down on expiry day and there were to other means to square it off?

 

[govindheg]

Unfortunately in this case, debit of 17344 is correct. Option exercise price is based on BN closing price(26016). Its not based on LTP of the option/LTP of BN.

Meaning you should never leave an option open, whether ITM or not. Am I right?