10.4 Settlement of Options Contract

1/28/2021 Settlement of Options Contract
BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

News: IDBI Bank jumps after turnarou... About us India Support
COURSE Quotes TRADE NOW
Derivatives
Intermediate MARKETS RESEARCH
Chapter 10.4
LEARN PORTFOLIO INVESTING
0/4 CHAPTERS 0/4 QUIZZES
SETTLEMENT OF OPTIONS
1
FUTURES PRICI… CONTRACT 11
SETTLEMENT O…
10
2
3
OPTIONS PRI…
4
SETTLEMENT O…
Win a Badge! An options contract is settled at any latter date after it is purchased by a trader. Thus the
FINISH ALL CHAPTERS AND settlement can be done on the expiry date, before the expiry date of the contract or trader can let
QUIZZES it expire without exercising if not profitable.
Previous Course Next Course

https://simplehai.axisdirect.in/3549_courses 1/19

Derivatives
Intermediate MARKETS RESEARCH LEARN PORTFOLIO INVESTING
1 FUTURES PRICI… 11
SETTLEMENT O…
10
2
3
OPTIONS PRI…
4 SETTLEMENT O…
Win a Badge!
FINISH ALL CHAPTERS AND
QUIZZES


Derivatives
SETTLEMENT O…
10
2
3 OPTIONS PRI…
4 SETTLEMENT O…
Win a Badge!
QUIZZES


Derivatives
SETTLEMENT O…
10
2
3 OPTIONS PRI…
4 SETTLEMENT O…
Win a Badge!
QUIZZES


Derivatives
1
FUTURES PRICI… 11
SETTLEMENT O…
10
2
3 OPTIONS PRI…
4
SETTLEMENT O…
Win a Badge!
QUIZZES


Derivatives
1
FUTURES PRICI… 11
SETTLEMENT O…
10
2
3 OPTIONS PRI…
4
SETTLEMENT O…
Win a Badge!
QUIZZES


Derivatives
1
FUTURES PRICI… 11
SETTLEMENT O…
10
2
3 OPTIONS PRI…
4 SETTLEMENT O…
Win a Badge!
QUIZZES


Derivatives
1
FUTURES PRICI… 11
SETTLEMENT O…
10
2
3
OPTIONS PRI…
4
SETTLEMENT O…
Win a Badge!
QUIZZES


Derivatives
Intermediate MARKETS RESEARCH LEARN PORTFOLIO
Settlement of Call Options
INVESTING

A buyer of the call option can square off his position on the date of expiry or before it. He can
square off his position before the expiry by selling the same contract with same expiry and strike
price in the market. The call option buyer can exercise his contract on the day of expiry, here the
1
FUTURES PRICI… exchange on the date of expiry will calculate the difference in the closing price of the stock and
strike price and the traders account will be credited with the profit of the trade. In case of the seller
11
of call options contract want to square off his position he will have to buy back the same number of
call options of the same script at the same strike price and expiry that he has sold.
SETTLEMENT O…
10
2
3
OPTIONS PRI…
4
SETTLEMENT O…
Win a Badge!
QUIZZES


Derivatives
1
FUTURES PRICI… 11
SETTLEMENT O…
10
2
3
OPTIONS PRI…
4
SETTLEMENT O…
Win a Badge!
QUIZZES


Derivatives
1
FUTURES PRICI… 11
SETTLEMENT O…
10
2
3
OPTIONS PRI…
4
SETTLEMENT O…
Win a Badge!
QUIZZES


Derivatives
1
FUTURES PRICI… 11
SETTLEMENT O…
10
2
3
OPTIONS PRI…
4
SETTLEMENT O…
Win a Badge!
QUIZZES


Derivatives
1
FUTURES PRICI… 11
SETTLEMENT O…
10
2
3
OPTIONS PRI…
4
SETTLEMENT O…
Win a Badge!
QUIZZES


Derivatives
1
FUTURES PRICI… 11
SETTLEMENT O…
10
2
3
OPTIONS PRI…
4
SETTLEMENT O…
Win a Badge!
QUIZZES


Derivatives
1
FUTURES PRICI… 11
SETTLEMENT O…
10
2
3
OPTIONS PRI…
4
SETTLEMENT O…
Win a Badge!
QUIZZES


Derivatives
SETTLEMENT O…
10
2
3
OPTIONS PRI…
4 SETTLEMENT O… Settlement of Put Option
A buyer of the put option can square off his position on the date of expiry or before it. He can
square off his position before the expiry by selling the same contract with same expiry and strike
price in the market. The put option buyer can exercise his contract on the day of expiry of his
contract, here the exchange on the date of expiry will calculate the difference in the closing price
of the stock and strike price and the traders account will be credited with the profit of the trade. A
seller of a put option can square off his position before expiry by buying the put options of same
stock with same strike price and same expiry.
Final Exercise Settlement
In options trading, final Exercise settlement is effected for option positions at in-the-money strike
prices existing at the close of trading hours, on the expiration day of an option contract. Long
positions at in-the money strike prices are automatically assigned to short positions in option
contracts with the same series, on a random basis. Option contracts, which have been exercised,
shall be assigned and allocated to Option Writer. Final settlement loss/ profit amount for option
contracts on Index is debited/ credited on T+1 day (T = expiry day). Open positions, in option
contracts, cease to exist after their expiration day.
Win a Badge!
QUIZZES


News: IDBI Bank jumps after turnarou... An options contract is settled at any latter date afterAbout
it is
us purchased
India Support
COURSE by a trader. Thus the settlement can be done on the expiry date,
Quotes
on
TRADE NOW
before the expiry date of the contract or trader can let it expire
Derivatives without exercising if not profitable.
KEY TAKEAWAYS:
1 FUTURES PRICI… There is no need to hold the Option Contract till the expiry, trader can square off during the life of
11
the contract and book profits or stop loss as the case maybe.
SETTLEMENT O…
10
2 The Exercise style is European which means there is a single date for expiration of option contract
which is last Thursday of the month
One of the exception for this is Bank Nifty Option which expires weekly (Thursday of every week)
3
OPTIONS PRI… The Pay-out for the trade takes T+1 days
4 SETTLEMENT O…
NEXT COURSE OF ACTION:
Get a snapshot of volume and value of contracts traded in Derivatives market by visiting Market
Statistics
Visit Trading Reports and know our expert take on short term outlook on stocks, derivatives and
indices based on technical analysis.
TAKE A QUIZ
Investment Markets Insights Important Main Office Address

Unit No. 2, Phoenix Market City,15, LBS Road,
Options Overview Investment Ideas Links Near Kamani Junction, Kurla (West), Mumbai-
Win
Equity
a Badge! Equity Trading Ideas
NSE
400 070.
FINISH ALL CHAPTERS AND Derivatives Mutual funds Ideas

Derivatives BSE Telephone Numbers
QUIZZES Mutual funds Reports
Mutual funds SEBI 022-40508080
Commodity derivatives
Commodities 022-61480808
Previous Course Indices
Next and Sectors
Course
SIP
BSE Sensex: 46874.36 -1.13%
NSE stock list
News: IDBI Bank jumps after turnarou... BSE stock list
IPO
Tools SCORES(Sebi Complaints
Redress System)
Customer care Timings
Euro to INR: 88.59 -0.15%
Mon- Fri: 08.45 to 17.30 IST
About us India Support
NCD and Bonds Returns Calculator 1st, 3rd and 5th Sat: 10.00 to 13.00 IST
COURSE Quotes
ETFs
Learn SIP calculator
Axis Group TRADE NOW
Derivatives
Currency Email Address
Tax Saving Overview
Services Axis Bank In case of any queries please write to:
Intermediate
Demat Account
Equity smallcase Demos
Courses
MARKETS RESEARCH LEARN
Research On SMS
Axis Bank Foundation
PORTFOLIO
Axis Finance
INVESTING
helpdesk@axisdirect.in
0/4 CHAPTERS 0/4 QUIZZES Subscription Axis Capital Connect With us on

Webinars
Platforms Direct Speak

Good Reads
Axis Trustee
Axis Mutual Fund
1 FDesktop
UTURES PRICI…
Web trading A.TREDS Ltd
Download App
11
Policy
trading
Mobile application
SETTLEMENT O…Wordings-
10
2
Insurance TATA AIG
3
OPTIONS PRI… (General
Insurance)
4 SETTLEMENT O…Group Mediprime
Group Credit Secure Plus
Investments in securities market are subject to market risks. Read all the related documents carefully before investing.
Axis Direct is a brand under which Axis Securities Limited offers its retail broking and investment services.Trading Member| Axis Securities Limited,CINNo.U74992MH2006PLC163204 |
SEBI Single Reg. No.- NSE, BSE,MSEI, MCX & NCDEX – INZ000161633 | ARN- 64610 SEBI-Research Analyst Reg. No. INH 000000297
IRDA Corporate Agent (Composite) Reg. No. CA0073 | Portfolio Manager Reg. No.- INP000000654 | SEBI Depository Participant Reg. No. IN-DP-403-2019 |Investment Advisor Reg
No. INA000000615
In case of any grievances please write to: customer.grievance@axisdirect.in
Attention Axis Direct Investors
+ Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
+ Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
+ Pay 20% upfront margin of the transaction value to trade in cash market segment.
+ Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide notice no. 20200731-7 dated July 31, 2020 and 20200831-45 dated August 31, 2020
and other guidelines issued from time to time in this regard.
+ Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.
+Contact details: To prevent unauthorized transactions in your account, kindly update your mobile numbers/email IDs with your stock broker, M/S Axis Securities.Receive information
of your transactions directly from Exchange on your mobile/email at the end of the day.
Win
+KYC a Badge!
NotificationKYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need
not undergo the same process again when you approach another intermediary
+Advisory against Tips:Investors are advised not to blindly follow the unfounded rumours, Tips given in social networks, SMS, WhatsApp, Blogs etc. and invest only after conducting
QUIZZES
appropriate analysts of respective companies. Beware of fraudster entities operating throughout India and sending bulk messages on the pretext of providing investment tips and luring
investors to invest with them in their bogus firms by promising hefty profits.
+IPO Investment:No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise
your
News: IDBI bank
Bank to make
jumps afterpayment in case of allotment. No worries for refund as the money remains in investor's account.
turnarou... About us India Support
+Client Registration Documents:Client Registration Documents are now available in Vernacular Language for NSE for BSE for MCX For NCDEX
COURSE +ADVISORY TO DEMAT ACCOUNT HOLDERS:Click here to know more Quotes TRADE NOW
Derivatives
+Filing complaints on SCORES - Easy & quick:
a. Register on SCORES portal
Intermediate
b. Mandatory details for filing complaints on SCORES are
i. Name, PAN, Address, Mobile Number, MARKETS
E-mail ID. RESEARCH LEARN PORTFOLIO INVESTING
c.Benefits:
i. Effective communication
ii. Speedy redressal of the grievances.
+Central Vigilance Commission (CVC): Please visit CVC website at https://pledge.cvc.nic.in and take "Integrity Pledge" to be an active part of the "Satark Bharat, Samriddh Bharat"
1 F(Vigilant
UTURES PRICI…
India, Prosperous India).
11
Terms & Conditions Disclaimer Rules and Regulations & forms Policies & Procedures Privacy Policy Sitemap 2019 Axis Direct All rights reserved.
SETTLEMENT O…
10
2 vV5.0.0.6-60
3
OPTIONS PRI…
4 SETTLEMENT O…
Win a Badge!
QUIZZES


10.4 Settlement of Options Contract

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

10.4 Settlement of Options Contract

Uploaded by

Copyright:

Available Formats

1/28/2021 Settlement of Options Contract

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW

0/4 CHAPTERS 0/4 QUIZZES

Previous Course Next Course

BSE Sensex: 46874.36 -1.13% Euro to INR: 88.59 -0.15%

COURSE Quotes TRADE NOW