Zerodha....

[shekharz]

Lets give these guys some time yaar . It may or mayn't start also but lets not be overly critical. People may trade will other brokers meanwhile.
Whatever they hv done till now itself is incredible......

I second your opinion bro, they have done very fantastically yet, will do the same in future too, lets give them some time .............

 

[NTrader42]

i am also waiting for the same, as per Zerodha Customer Care, they need another one week to start. let's hope for the best!

They have taken panga with FT by selecting Nest over ODIN, FT guys practically own MCX so not really surprising that ZD facing these artificial barriers and difficulties . . . sadly in India not much can be done about these unfair business practices.

 

[Zerodha]

Lets give these guys some time yaar . It may or mayn't start also but lets not be overly critical. People may trade will other brokers meanwhile.
Whatever they hv done till now itself is incredible......

People!!

Do understand that the delay actually hurts us more than anybody else... There is an investment that has gone into technology and there would be running costs for every day of delay... Our final go live date has gotten delayed, apparently thanks to MCX IPO and these guys being busy...

But we hope that next week should be the week...

Cheers..

 

[Zerodha]

Today, the 5500 put traded at Rs 13 at close. Final tick on nifty was 5478, and the close came at around 5483. Considering, this is an in-the-money option, why would it close below its intrinsic value? It should have closed at atleast Rs 17 if not Rs 22.

Every month a lot of traders in India loose unnecessary money as STT to the govt..

When an option expires in the money STT is 0.125% of the contract and not 0.017% on premium, if you sell it in the market...

So for eg, if the option is trading at say Rs 20, if you sell it in the market, the STT you pay would be around 0.17 Rs(0.017% of Rs 1000) Now the same option, if you held it to expiry and closes in the money, the STT now is 0.125% of the contract, which would be 0.125% of 275000(5500x50) around Rs 340 or almost 7 points difference...

In your case, you feel it should have closed at 17 because the nifty closing was 5483 and it closed at 13.. Ideally it should have closed at Rs 10( if you considered the 7 Rs STT that you have to pay) ...

 

[Zerodha]

If an option is about to expire worthless, does the option writer need to square it off?
Just to save brokerage/STT etc.

If an option is expiring worthless, you don't need to square off and pay a brokerage for that... A lot of brokers, get their clients to square off options that is expiring worthless, just to pocket some extra brokerage...

Cheers...

 

[coolcorner78]

Every month a lot of traders in India loose unnecessary money as STT to the govt..

When an option expires in the money STT is 0.125% of the contract and not 0.017% on premium, if you sell it in the market...

So for eg, if the option is trading at say Rs 20, if you sell it in the market, the STT you pay would be around 0.17 Rs(0.017% of Rs 1000) Now the same option, if you held it to expiry and closes in the money, the STT now is 0.125% of the contract, which would be 0.125% of 275000(5500x50) around Rs 340 or almost 7 points difference...

In your case, you feel it should have closed at 17 because the nifty closing was 5483 and it closed at 13.. Ideally it should have closed at Rs 10( if you considered the 7 Rs STT that you have to pay) ...

How about the case when you write an option and you are taking the premium home, then any STT applicable on the day of expiry? Just to clarify.

Cheers!!

 

[NTrader42]

How about the case when you write an option and you are taking the premium home, then any STT applicable on the day of expiry? Just to clarify.

Cheers!!

No, its not about who get the premium, it about in who's favor the option was assigned, and that can happen only in case of option buyer, where the option is in the money.

One more example of how the rules are tinkered to hurt the retail segment.

 

[dashr]

If an option is expiring worthless, you don't need to square off and pay a brokerage for that... A lot of brokers, get their clients to square off options that is expiring worthless, just to pocket some extra brokerage...

Cheers...

Would the option writer suffer excessive STT by not squaring off?

E.g. I write 5200CE and 5200PE Mar today at Rs.400 and Rs.60 respectively.
On expiry if they are trading at Rs.130 and Rs.0.2 respectively, should I only buy back 5200CE for Rs.130 and leave the other without squaring? Or can an option writer leave both unsquared. What's the best way to save on brokerage and STT?

Thanks

 

[coolcorner78]

Every month a lot of traders in India loose unnecessary money as STT to the govt..

When an option expires in the money STT is 0.125% of the contract and not 0.017% on premium, if you sell it in the market...

So for eg, if the option is trading at say Rs 20, if you sell it in the market, the STT you pay would be around 0.17 Rs(0.017% of Rs 1000) Now the same option, if you held it to expiry and closes in the money, the STT now is 0.125% of the contract, which would be 0.125% of 275000(5500x50) around Rs 340 or almost 7 points difference...

In your case, you feel it should have closed at 17 because the nifty closing was 5483 and it closed at 13.. Ideally it should have closed at Rs 10( if you considered the 7 Rs STT that you have to pay) ...

Now, I understand why I got an SMS telling square off any option positions to avoid STT in the afternoon from Zerodha. Though I didn't have any options buy, but, Its a nice reminder for traders, appreciate that Zerodha.

Cheers!

 

[Zerodha]

How about the case when you write an option and you are taking the premium home, then any STT applicable on the day of expiry? Just to clarify.

Cheers!!

STT on f&O is charged on the selling side only.. When you write(Sell) an option, you would have already paid an STT, hence you would not have to worry about paying any STT, if you square off or hold it till expiry..


Cheers..