Calculator for knowing margin

General
1

I am sorry if I was unable to find the relevant calculator that I am looking for. I request someone to let me know what will be the margin required to sell one call and sell one put if i possess the shares of that stock in my DP. It is going to be one of the nifty 50 stocks. I looked at the calculator where there is a choice to buy a futures contract and then sell both the call and put options. But it was not possible for knowing the margin requirement when we chose to buy the shares instead. I request you to please let me know the total capital required for buying one lot of shares and selling one call and selling one put option. Once again sorry if I did not search the forum properly.

2

https://zerodha.com/margin-calculator/SPAN/

3

Bro..  let assume you buy 100 shares of dlf at 110 rs.. than you need cash in your account is 100*110 = 11000  ( i am here saying cash needed because there is no question of margin when you buy any share in cash for delivery )

now after buying shares in cash for delivery you sell a call option of strike price 100 rs. which is trading at  10 rs ( lot size = 1000 )

because you sell a option.. that means you receive credit..  you receive 10,000 rs.. as premium amount...

and similarly, you sell a put option of strike price 120 rs.. which is trading at 15 rs.. ( lot size =1000)

again because you sell a option.. that means you receive credit.. you receive 15000 as premium amount..

so what margin you required..

suppose dlf goes to 100 rs.. at that time your put option price will be 25 rs.. but you sell it at 15 rs.. so it is up 10 rs.. from your buying price.. so zerodha will block a amount 10,000 rs.. from your equity account.. ( lot size =1000 so, 1000*10 =10,000 )

similarly, if dlf goes to 120.. than your call option price will increase to 20.. but you sell it at 10.. so again same thing.. zerodha will block a amount of 10,000 from you equity account..

plzz.. also look at this link.. http://content.icicidirect.com/learning/options/learnhome.htm

4

Thanks for the reply. But it does not show the equity. indeed it does not have nse or bse in the list of exchanges where shares will be bought and sold.

5

https://zerodha.com/margin-calculator/Equity/

6

Thanks again for the reply. There is no question of margin when I am buying against cash for delivery. For instance I will buy 2200 shares of dlf at the current price. And sell a call and put option which are slightly OTM. Probably I did not frame my question properly.

7

Thank you. Am I correct in concluding that there is no additional cash required for selling the options (one otm call and otm put)? Thanks for the link too.

8

ypp… you don’t need any additional cash for selling options… no need for thanxx… always ready to help you… ask anytime if any query arises…

9

Zerodha informed me that collateral can be used only to the extent of 50% of the new position (like option writing) Assuming that I have 2000 shares of SBI in my account, I will get nearly 3.6 lakhs but that cannot be used to write even one call option of strike price 205 that requires a margin of less than 60k. That means I can pledge only limited shares! Strange restriction but claimed as imposed by the exchange!!