Close to money option

I had a long position on an OTM option of HDFC bank at 1600 pe strike price. The expiry was next day. I want to know what happens to the margin requirements if I square off the option on expiry day as soon as it turns ITM during trading hours?


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got an answer?

did not really get the question.

You are long on PE, which means you have already paid the money to go long. Why would there be any margin requirement for an outright buy position fully funded with cash?

so, i have been getting messages about the margin requirements and that I have exceeded it by 2400%. I bought the option 10 days ago paying the premium in full (no leverage used)

it says EQ margin. not FnO margin. why don’t you raise a support ticket?

Hy @Jayanth_Reddy,

If your contract turns from OTM to ITM during the expiry week(Fri-Thur) there shall be a margin blocked for this due to physical delivery.

To know more about physical delivery you can check this link

Zerodha sends margin call SMS/Email as EQ irrespective of the segment.

ok. this is new learning for me.

I still believe option buyer has the right but no obligation to buy. Since there is no obligation, assumed he could walk away from purchasing it.