If I SELL a CALL and the initial margin is blocked. and later if I BUY a farther otp CALL, will the margin that was already blocked reduce?
I know I can first do the long call before the short call for smaller margin, but my query is specific
Yep, margin will be reduced… I do this everyday
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You can’t buy far otm options in zerodha due OI restrictions. Refer to the below article. This is specific to zerodha only. Other brokers you can buy first and then sell.
Choose the broker which follows all rules… You will be happy later.
You can if you migrate to Orbis.
I also read this.
If you have an existing short position, you can hedge your trade by buying options without any range restriction.
Moreover, I suppose restrictions are not for options of stocks
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Restrictions are not for the stocks and only for the indices ? I am not sure.
Restrictions are only for Index F&O.
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Yeah I know. I still trade with zerodha I have enough capital to short short first and buy later if I need margin benefit or hedge.
The intent of the answer was to explain it to the OP