Options calculation doubt in ICICIDirect. Urgent.

Hi Friends,
I want your help inorder to understand how entire transaction handling is done in case of Options esp. with regs. to ICICIDirect and your resp. brokers.
Here is the set of transactions that need analysis and your guidance.


Date Description Action Qty Price Total Amt Brokerage.
11-Feb-2008 OPT-NIFTY -28-Feb-2008-5200-CE-I Buy 100 150.00 15,000.00 213.48
14-Feb-2008 OPT-NIFTY -28-Feb-2008-5200-CE-I Buy 100 125.00 12,500.00 0.00
14-Feb-2008 OPT-NIFTY -28-Feb-2008-5200-CE-I Sell 200 165.00 33,000.00 609.38

As you can see above, I had bought 5200CE 100 qty @150 on 11th Feb, the amount which was debited/adjusted in my a/c. Then on 14th Feb I again bought some more 5200CE 100 qty@125 and on the same day sold off both the qty i.e 200 qty @165. So the calc. is now

qty Price Total Price(CP) qty Price Total Price(SP) P/L
100 150 15000 200 165 33000
100 125 12500

But I have been credited only Rs. 19890.62. The calcul. on 14th Feb in Cash Projections show as under

14-Feb-2008 NSE Premium Adjustments OPT-NIFTY-28-Feb-2008-5200-CE -12500
14-Feb-2008 NSE Premium Adjustments OPT-NIFTY-28-Feb-2008-5200-CE 33000
14-Feb-2008 NSE Brokerage (incl Taxes) Brokerage -609.38
14-Feb-2008 NSE Payin-Payout Bank Settlement T+1 15FEB2008474947 -19890.62

How? When I should be credited with 33000-brokerage? What happened to my Principal Amount i.e 27000 that I invested. Either I should have 33k or 100 lot of 5200ce that I bought on 14th Feb. Can someone smell the problem in ICICIDirect's calculations or if someone knows how the calculations take place then can you explain.

Please help since I have to get back to them ASAP. I believe for 27k invested getting back only 19k would mean Loss but in my Income tax it will show as profit thereby leading to more problems in IT calcul., bank statements etc.

I spoke to icicidirect guys and they say it is fine to decut 12500 on 14th feb even if it squared off on the same day. I say why when I have sold off my shares the same day why take amount from me.

Please help.

May I ask if you are you new to trading? I can't undrestand what you are saying about original investment of Rs27000/-

As far as I can tell theres nothing wrong in the statement as far as i can tell you have a total profit of Rs4677.62/-

and even if I can't tell I've never heard of icicidirect making a calculation error.

On 11th for buying 1 lot ce5200 @ 150 debit of Rs15213.48/-

On 14th for buying 1 lot ce5200 @ 125 and then selling 2 lot ce5200 @ 33000 credit of Rs19890.62/-

Debit means deducted from account and credit means added to your account

So you have one debit of Rs15213.48/- and one credit of Rs19890.62/- so what is the total? Is it a credit or debit and for how much tell me?

It is a credit Rs4677.62/- which is your profit.

Dear Friend,

1.You might have been debited 15,000+ for your trade done on 11th Feb
2. As per the cash porjection on 14th feb, you will be receiving 19,000+ including all the deductions(note I think -12500 will not be deducted from your amount but it will be adjusted for the +33000 you have made as premium on sell)
3. This being the case your principal is only 15,000+ and you have earned around 19,000+. I did'nt see any problem here.
Please take your own decision.

Thanks
R Venugopal

Hi Venu,
thanks for your help. Are you saying that I have never been debited/adjusted for 12500 from my Allocation? But then what confuses me is why the 12500 adjustment with 33000 total amt that I feel I should be getting if my a/c was never debited/adjusted. I just want to make sure my Bank balance, IT calc. etc do not conflict.

Regards.

I am not really new to trading(dont go by my handle). But this is the first time I am tracking my calculations. The point I am trying to make is this. 15000 debit for first lot. I shuld have been debited for Rs. 12500 for next lot and Rs. 33000 credited. But I see 15000 debited for first lot...fine. Rs. 33000-12500-brok.=19890.62 only credited. my contention is that if my order for last lot was squared off on the same day. why the debit of 12500 since I no longer have shares with me....what abt my total 15000+12500 capital I invested. Hope I am clear.

I am sorry but I really can't understand what you are saying. Every way I look at it I am unable to see any error in your statement, its seems quite straight forward.


??? ???

Where does it say debit of Rs12500/-?

Even if you read my reply I haven't said a debit of Rs12500/-, which shows you haven't read my reply.

Please look at the pay in/pay out to see what is debited or credited, there has been a credit of Rs. 19890.62 as you yourself have said.

When we open and close our position in the same day it is called intra-day trading, in this case the net value is credited or debited in the account, in your case the net value is Rs19890.62, and this is what has been credited in your account.

Also you have posted the same post twice in the forum and that is not a correct thing to do. If you wanted clarity you should have edited your original post instead of posting twice. If its a mistake its completely completely understandable but you have deliberately posted twice. In future I humbly request you not repeat this, all our members are good helpful people but you shouldn't abuse the forum. One of your posts will be deleted.

If you have any further question we are always there to help you if we can.

hi marcus,
Sorry for double posting but like I said, I was not sure about if It shud go under broker & demat or options trading and thus I clearly mentioned the double post. It was not intentional to violate forum rules but thanks for merging the threads.

Reg. the debit of 12500, things look clear to you since you are seeing -12500 first and then 33000 credit. but it was not so in the morning when I looked at my statement and I had to contact ID guys and they seem to have rearranged to remove the confusion and thus it looks easy to understand now. my contention was that if 33000 is shown as added why I am not paid so and why remove -12500. read below for clarification.

reg. the query, I think I am somewhat understanding the things going on in icicidirect which I wud like to put just for posterity. ICICIDIrect locks some amount and adjust the debits against it(as confirmed by guys from id). Net amt is credited. what they *seem* to have done is that instead of debiting 12500 and then crediting 33000(which I felt I shud be getting since I felt the -12500 from my a/c meant they *actually* debited which ID guys told was actually adjusted against the Blocked for trade), they adjusted the 12500 from my profits without debiting my main a/c with 12500. so ineffect, I never paid 12500 so they never give it back to me and thus the adjustment with my profit of 33k.

This is quiet confusing since it is not documented and we have no way to trace whether the Blocked for Trade gets updated with 12500.This is what was explained to me by sr. id guy that 12500 is returned back to your blocked for trade and I can deallocate it. anyways quiet confusing at first but it was a good exercise any which ways to help me understand the ongoings. I am detailing everything I understood from the icicidirect guy told me for posterity.

thanks everyone for help.