I didnt get delivery of shares on expiry :(

Romeo1998

Active Member
#1
Dear friends and respected seniors,
On 15th october, 2018, i had sold PE options of tatamotors of 190 strike price, because i was expecting tatamotors' month end price to be below 190 and i wanted to take delivery of shares on expiry. Tatamotors closed at around 166 on month end, but i didnt get delivery of shares. Please guide me, what did i do wrong ? Do i have to inform broker in advance for taking delivery of shares ? My broker is Upstox, i contacted them too, but they are just sending me pdf documents of rules and guidelines and SEBI circulars and are not answering my queries :( Can someone please kindly tell me why i didnt get delivery of shares :(
Awaiting your replies.
Thank you.
 

travi

Well-Known Member
#2
Dear friends and respected seniors,
On 15th october, 2018, i had sold PE options of tatamotors of 190 strike price, because i was expecting tatamotors' month end price to be below 190 and i wanted to take delivery of shares on expiry. Tatamotors closed at around 166 on month end, but i didnt get delivery of shares. Please guide me, what did i do wrong ? Do i have to inform broker in advance for taking delivery of shares ? My broker is Upstox, i contacted them too, but they are just sending me pdf documents of rules and guidelines and SEBI circulars and are not answering my queries :( Can someone please kindly tell me why i didnt get delivery of shares :(
Awaiting your replies.
Thank you.
Is Tata Motors in the list of stocks to be physically settled in Oct Series?
Last I checked, there were 46 and 2 more were added so around 48 are on that list.
I didn't find it anywhere.
 

Romeo1998

Active Member
#3
Is Tata Motors in the list of stocks to be physically settled in Oct Series?
Last I checked, there were 46 and 2 more were added so around 48 are on that list.
I didn't find it anywhere.
Hello Travi Sir,
Is this the list of those companies ?

1 ADANIPOWER ADANI POWER LIMITED
2 AJANTPHARM AJANTA PHARMA LIMITED
3 ALBK ALLAHABAD BANK
4 ANDHRABANK ANDHRA BANK
5 BALRAMCHIN BALRAMPUR CHINI MILLS LIMITED
6 BEML BEML LIMITED
7 BERGEPAINT BERGER PAINTS (I) LIMITED
8 CANFINHOME CAN FIN HOMES LIMITED
9 CGPOWER CG POWER AND INDUSTRIAL SOLUTIONS LIMITED
10 CHENNPETRO CHENNAI PETROLEUM CORPORATION LIMITED
11 DCBBANK DCB BANK LIMITED
12 GODFRYPHLP GODFREY PHILLIPS INDIA LIMITED
13 GODREJIND GODREJ INDUSTRIES LIMITED
14 GRANULES GRANULES INDIA LIMITED
15 GSFC GUJARAT STATE FERTILIZERS & CHEMICALS LIMITED
16 HEXAWARE HEXAWARE TECHNOLOGIES LIMITED
17 HCC HINDUSTAN CONSTRUCTION COMPANY LIMITED
18 IDBI IDBI BANK LIMITED
19 IFCI IFCI LIMITED
20 JPASSOCIAT JAIPRAKASH ASSOCIATES LIMITED
21 JUSTDIAL JUST DIAL LIMITED
22 KSCL KAVERI SEED COMPANY LIMITED
23 KPIT KPIT TECHNOLOGIES LIMITED
24 MGL MAHANAGAR GAS LIMITED
25 MRPL MANGALORE REFINERY AND PETROCHEMICALS LIMITED
26 NHPC NHPC LIMITED
27 NIITTECH NIIT TECHNOLOGIES LIMITED
28 OIL OIL INDIA LIMITED
29 OFSS ORACLE FINANCIAL SERVICES SOFTWARE LIMITED
30 ORIENTBANK ORIENTAL BANK OF COMMERCE
31 PTC PTC INDIA LIMITED
32 PVR PVR LIMITED
33 RCOM RELIANCE COMMUNICATIONS LIMITED
34 RNAVAL RELIANCE NAVAL AND ENGINEERING LIMITED
35 RPOWER RELIANCE POWER LIMITED
36 REPCOHOME REPCO HOME FINANCE LIMITED
37 SIEMENS SIEMENS LIMITED
38 SREINFRA SREI INFRASTRUCTURE FINANCE LIMITED
39 SRF SRF LIMITED
40 SYNDIBANK SYNDICATE BANK
41 RAMCOCEM THE RAMCO CEMENTS LIMITED
42 TORNTPOWER TORRENT POWER LIMITED
43 TV18BRDCST TV18 BROADCAST LIMITED
44 UBL UNITED BREWERIES LIMITED
45 VGUARD V-GUARD INDUSTRIES LIMITED
46 WOCKPHARMA WOCKHARDT LIMITED

Sir if tatamotors was in this list, then i would have got delivery of shares ?
Sir, this list changes every month ?
 

travi

Well-Known Member
#4
Sir if tatamotors was in this list, then i would have got delivery of shares ?
Sir, this list changes every month ?
Yes, if shares are physically settled on the list, only then.
There are other minor requirements like Cash should be available, and the broker does not auto-square-off etc, check with Broker for specific details.

The list doesn't change every month but some tinkering keeps happening periodically. SEBI has planned to take all F&O stocks ultimately. This is similar to other developed mkts.
You need to check NSE (or other Exchange) circulars.
 

Romeo1998

Active Member
#5
Yes, if shares are physically settled on the list, only then.
There are other minor requirements like Cash should be available, and the broker does not auto-square-off etc, check with Broker for specific details.

The list doesn't change every month but some tinkering keeps happening periodically. SEBI has planned to take all F&O stocks ultimately. This is similar to other developed mkts.
You need to check NSE (or other Exchange) circulars.
Thank you Sir
 

travi

Well-Known Member
#7
First,
Sold PE options because you were expecting prices to go down???
I think you're look at it only from a single Leg Trading angle.

Only when you're Short Puts, do you become eligible for Delivery (Buying).

If you are short calls or long puts, you have to deliver the shares as per settlement.

Notional PnL is a different matter, but that why he was expecting delivery.
 

cinderblock

Well-Known Member
#8
If you are expecting the prices to go down you can buy Puts and then just buy the shares at month end.

Like he could have bought 190 Puts and bought shares at month end.
 

travi

Well-Known Member
#9
Many ppl often execute the same strategy.

It is only that OP got caught up in using words like "expecting". Its upto to him to explain it.

I clarified why Short Puts will be eligible for delivery.

As for strategy,
If he bought puts and price went up, he loses premium and that's a straight loss trade. ( Buying shares at higher prices is even more painful )

Options sellers will try to Sell PE, if prices went up, you profit from PE premium, else buy the shares instead and hold them until they pay-off.
Getting delivery guarantees a locked in price, so future price fluctuations (gaps etc) won't affect the eventual buy price.
Trade date will be expiry, and buy price is settlement price.

Hope you see the difference in both.
 

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