Articles tagged “Physical Settlement”
13 articles.
2026 (13)
- Do Not Exercise (DNE) option
Do Not Exercise let brokers stop exercising close-to-money option strikes. NSE discontinued DNE for CTM strikes from 14 October 2021 after STT was rationalised …
- How to sell a call option on Zerodha Kite
Step-by-step on writing a call option on Zerodha Kite: the NRML order, SPAN plus exposure margin blocked, premium credited, unlimited-loss risk, and physical …
- Moneyness: in-the-money, at-the-money, out-of-the-money
Moneyness classifies an option as in-the-money, at-the-money or out-of-the-money by where the underlying sits relative to the strike, which sets the split of …
- Physical delivery risks in stock F&O
Why a small option premium can hide a large delivery obligation, how the short-delivery buy-in auction penalty works, the cost of taking or giving delivery, and …
- Physical delivery timing on Zerodha
When the delivery margin ramps in expiry week, when stock F&O obligations are computed, when shares and funds actually move at T+ days after expiry, and how …
- Risks of F&O trading on Zerodha
The real risks of futures and options on Zerodha: leverage, unlimited loss on short options, gap risk, margin calls, physical settlement, and the SEBI evidence …
- Stock-option restrictions near expiry
Near expiry, Zerodha applies a physical-delivery margin ramp on ITM stock options from expiry minus four days, blocks fresh deep-ITM and illiquid stock options, …
- STT on options exercise
Why securities transaction tax on an exercised in-the-money option is levied on its intrinsic settlement value, not the premium, how the post-2019 narrowing …
- What happens to unsquared options at expiry
Unsquared options at expiry: ITM index options cash-settle, OTM options lapse, ITM stock options go to physical delivery, and exercise triggers STT on intrinsic …
- Options exercise charges at Zerodha
What it costs when in-the-money option positions get exercised at expiry on Zerodha, and why exercised options carry a heavier statutory bill than squared-off …
- How to avoid physical settlement (manual close-out)
Step-by-step guide to closing out in-the-money stock options and stock futures before expiry to avoid physical settlement obligations, delivery margin blocks, …
- Delivery margin field on Kite
The delivery margin field on the Kite funds page reflects the additional margin held against open F&O positions in their last few days before physical …
- How to physically settle an in-the-money option
Explains the physical settlement process for in-the-money stock options on NSE, what obligations arise, how Zerodha handles delivery margin, and what to do if …