General Trading Chat

[Smart_trade]

Finally, some clarity on options :

https://www.moneycontrol.com/news/b...9-stt-securities-transaction-tax-4154981.html
Budget 2019: Relief for traders as FM proposes lower effective STT on exercise of options
.............

"
Amit Gupta, CEO and Co-founder TradingBells told Moneycontrol that “This is a huge relief to the markets. STT levy has been streamlined. That's a relief since now traders won't have to be worried about compulsorily squaring off in-the-money options before expiry,” he added.
"

I suppose it means that if I buy an option for Rs. 5 and forget to sell it, it will be auto squared off with tax on Rs. 5 only ??

No,if you buy an option for Rs 5 and If the difference between settlement price and strike price is Rs 6 then STT will be on Rs 6 and not on the full settlement price.

ST

Edit : I have edited the earlier post to correct my understanding.

 

[timepass]

No,if you buy an option for Rs 5 and if the Settlement price and strike price difference is less than Rs 5 then the option expires worthless. If the difference between settlement price and strike price is Rs 6 then STT will be on Rs 6- Rs 5 = Re 1=00 not on Rs 5.

ST

So, if the option expires worthless, there is no STT ??

 

[timepass]

Also, about this PAN-Aadhar interchangeability, you can quote Aadhar instead of PAN, but can you use PAN instead of Aadhar ??

 

[bkb]

No,if you buy an option for Rs 5 and If the difference between settlement price and strike price is Rs 6 then STT will be on Rs 6 and not on the full settlement price.

ST

Edit : I have edited the earlier post to correct my understanding.

Hi. It will be effective/applicable for trades from 01-Apr-2019 or only hereafter or April-2020??

 

[Smart_trade]

So, if the option expires worthless, there is no STT ??

Yes for options expiring worthless, there is no STT.

ST

 

[Smart_trade]

Hi. It will be effective/applicable for trades from 01-Apr-2019 or only hereafter or April-2020??

I guess it will be applicable from the date of passing of Finance Bill.....not by retrospective effect.

Smart_trade

 

[bpr]

this STT thing is for excercise of option only ...So it will affect NIFTY and BN option traders only who choose to keep their position till expiry. In other words very small subset of users/trades.
On Equity option it will have zero impact as now we have physical settlement nobody holding position beyond Monday forget till expiry.
Edit:
On second thought this opens up a new market.
Very close to expiry time people can buy options in huge qtys and can gamble without much blowback.

 

[bpr]

So, if the option expires worthless, there is no STT ??

I thought it is already zero for option expiring worthless if you are the buyer as there is no sell/ excercise.
if you are the seller you would have already paid STT as per the premium.
STT is only aplicable for sell of an option.

 

[timepass]

is JSPL now making a new downward channel ?

it's in channel , so time to go up

View attachment 33170

 

[timepass]

Jhunjhunwala had bought spicejet for Rs. 15 !!

Boon For IndiGo, SpiceJet And Co In Nirmala Sitharaman's Budget

https://www.ndtv.com/india-news/bud...-and-co-in-nirmala-sitharamans-budget-2064918