Deliverable quantity is computed as the number of lots of a stock held multiplied by the lot size. For example, if you are long on 5 lots of Reliance Industries and if you leave it to expiry then it will result in delivery to the tune of 2500 shares of RIL (500 per lot x 5 lots). Let us look at how the various positions in futures and options on stocks will result in actual delivery if left to expiry.

· If you are long on RIL futures and leave it to expiry, then it will result in a buy (security receivable) position. That means; you margins must be 100% of the contract value paid to the exchange by the end of expiry date or latest by E+1 date.

· If you are short on RIL futures then it result in a sell (security deliverable) position. That means, you need to ensure that you have equivalent shares clear in your demat account that is mapped to your trading account. If there are any hitches, it will be treated as a delivery default and penal charges and auction costs will be imposed on you.

· What about call options on stocks. This will apply only to options that are ITM and left to expiry, not to positions squared off. Even if you are long on options, the last week will entail progressively higher collection of margins going up to 100% by the expiry day. In case of ITM call options, if you are a buyer of call it will result in a buy (security receivable) position. On the other hand, if you have a short call assigned it will result in a sell (security deliverable) position since it is an obligation to sell. In the latter case, you must have the required shares available in your demat account failing which penal and auction losses will come up.

· Finally, let us turn to ITM put options. In the case of long puts exercised it will result in a sell (security deliverable) position. That means you need to have shares available and ready in your demat account to give equivalent delivery. On the other hand, if a short put option gets assigned then it will result in a buy (security receivable) position. In this case, you have an obligation to buy because you have sold a put option.