Can I do covered call on goldm with GoldM futures

Commodities
1

Can we do covered calls on MCX GoldM with futures as underlying.
Here is what i am planning to do
a) Buy 1 lot of GOLDM 21 Jan future @ 49310
b) Sell 1 lot of GOLDM 21 Jan 49000 CE @ 1000

My questions are
a) I don’t want to take delivery , so how do i handle this trade on the expiry day as the volumes and open interest is very low?
b) If GoldM closes at 50000, will the price of my option be 1000 or the last trading price?
c) How will it impact the margins during the last 5 days?
d) Does zerodha accept only cash as margin for commodities or any pledged instrument as well?

2

Hi,
Goldmini options are not allowed to trade due to very low liquidity. Goldmini futures will be closed one day before the tender period starts( 5 days before expiry) to avoid physical delivery. Only cash will be used as margin for commodities, collateral is not allowed.

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3

Thanks Raavendran

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