I have hedged long and short positions. Mostly the short positions are of next week and hedge it with current week expiry. On expiry day, With the new margin rules, it is no longer possible to get margin benefit by converting the short positions to MIS.
Zerodha allows hedge to be bought for short positions. A simple solution to the above issue is on expiry day do not consider the hedge of current week expiry and allow options to buy for hedging short positions other than current week expiry.
e.g. today is 10-Jun-2021
short 16200CE 17-June-2021 10 lots
Long 16200 CE 10-June-2021 10 lots
Due to the limited margin in my account, I cannot square off the Long position. I cannot buy next week expiry option to hedge for margin benefit due to OI range. What Zerodha should allow is on expiry day, allow hedges for short position other than current expiry to be bought without considering the current week expiry long positions.
In the current scenario, I have to rebuild my positions, either 2 or 3 lots at a time. This increases my turnover and the brokerage charges. It’s a kind of unwanted loss which Zerodha is not going to compensate.
If the suggestion given above is not possible, I will have no other choice but to migrate to another broker. I simply can’t cover my short positions and increase the trades.