Bulletin - Physical delivery margin: In-the-money long options

bitte97 · January 23, 2021, 5:08am

@ShubhS9 @nithin
Please see attached bulletin from ZERODHA. Please advise how one can monitor his margin requirement as per this bulletin.

ShubhS9 · January 23, 2021, 5:27am

You can check the margin requirement on the order window itself.

bitte97 · January 23, 2021, 6:23am

Hi @ShubhS9 @nithin

I am actually holding open positions which if required I will be going for physical settlement. See my positions and funds screenshots. In this case how can one monitor the continuously changing margin requirement?

ShubhS9 · January 23, 2021, 6:33am

The above mentioned margins are applicable only for Long ITM Options, you’re holding Short positions, for which SPAN + Exposure margin is already blocked, margin requirements for Short Options will increase only on the last two days of expiry to twice of SPAN + Exposure margin requirements. You can learn more on this here.

bitte97 · January 23, 2021, 6:37am

Thanks. So I guess I am safe.

bitte97 · February 23, 2021, 7:14am

@ShubhS9
I have one more question regarding physical settlement. At what time do I have to have funds ready for physical settlement? Is it after market close. The reason why I am asking is to know if I can use the margins released from other trades after expiry for physical settlement.
Thanks.

ShubhS9 · February 23, 2021, 9:01am

You should have 50% of the contract value or twice of SPAN + Exposure margin on last two days of expiry. Remain amount you can bring after market hours on Thursday. Yes, you can use the proceeds received from squaring-off other trades.