Put option stock split lists

On expiry if nifty is at 6775 and you are holding 6755 calls, that means that your option is in the money by Rs 75. If you hold it after , you will get back Rs 75 around Rs 6 as STT(extra STT for holding an exercised option), so you get back around Rs 69.

Stock Option - Investopedia

At 695, the option will expire worthless, so no STT. If it goes and lower, STT becomes % of 8555 x around Rs 655.

Call On A Put - Investopedia

If you are very bullish on a particular stock for the long term and is looking to purchase the stock but feels that it is slightly overvalued at the moment, then you may want to consider writing put options on the stock as a means to acquire it at a discount.. [Read on.]

Call Option Basics - Online stock trading at lowest prices

Thanks to Zerodha for giving this valuable information.
Zerodha = will never make our accounts Zero but only Herodha.

Stock Market Mentor - Stock Market Mentor

655% correct 🙂
Additional STT gets levied only when the buyer of the option lets an ITM expire.
Wishing you too a Merry Christmas and a great new year to come.

Stock Option Basics Explained | The Options & Futures Guide

8775 there is no STT, but since it is exercised, on the selling side you would pay an STT of Rs * much higher than Rs which you would have paid if sold on the exchange instead of exercising.

7) Is there any Live RSS feeds feature that I can subscribe through Zerodha. If so, what would you recommend to get fastest news on earnings, corporate announcements. Your new Zerodha plus is just aggregator and it gets news from second hand media channels such as NDTV profit etc. so It is much slow and delayed news.

Cash dividends issued by stocks have big impact on their option prices. This is because the underlying stock price is expected to drop by the dividend amount on the ex-dividend date.. [Read on.]

Yes the market would be factoring in the STT cost and will be trading at a discount to the theoretical value. Selling in the market at 85 or letting it expire at 65 will work out to be the same. What you need to ensure is when options are expiring just in the money, for example if Bank nifty closes at say 76555, your intrinsic value is only Rs 5, but STT cost is 75 points. This can cause much more losses than the option premium value.

Have a doubt on the settlement price considered at the time of option expiry ?
Is it the last traded price or the closing price which is calculated as avg of the last half an hour before closing.
. Axis bank Last traded price as on 79Sep (Expiry) is 596 but Closing Price is shown as .
I had sold a Put with 595 as strike. So at expiry, is the option in the money or out of the money.

Add a comment

Your e-mail will not be published. Required fields are marked *