Bull put spread

If I have a Bull Put spread . On expiry day if I square off the long puts in the morning. I would get a margin shortfall warning as the short puts (that anyways expire eod) would be naked. Do I need to do anything to the short puts assuming there is a high chance they expire worthless or would zerodha auto squareoff them before eod ?

If you don’t maintain sufficient margins, your position can be squared-off by RMS.

Also, there is now peak margin reporting rule in place from December, which essentially means you’ll have to maintain adequate margins for your positions throughout the trading day, any shortfall can result in peak margin penalty. You can learn more about peak margin here.

Thanks 1 more question…what if I convert my position to MIS from NRML . The position is anyway expiring EOD…would that not help

Also how do I convert ? Simply press the convert button on the positions tab ?

MIS is intraday order type and you have to square-off this position by cut-off time. If you want to leave your position to expire, you can do so in NRML only.

Yes, you’ll have to select the convert option in the positions tab to convert your position.