Basis for calculating Margin for option selling

[Naveen_Kumar_Shiripu]

Would like to know the basis for margin calculator for option selling. pls help

[ShubhS9]

This should help you.

How is margin calculated for futures and shorting/writing options?

Futures and shorting/writing options carry unlimited amount of risk. To ensure no defaults, initial margins are asked to take such positions and then any marked to market losses has to be made good off. There are two components to the margins SPAN margin is calculated by standardized portfolio analysis of risk (SPAN), a leading system that has been adopted by most options and futures exchangesaround the world. SPAN is based on a sophisticated set of algorithms that determine margin requireme…