Confused about margin requirement for sold put in the expiry week

F&O
1

Let’s say I sold put of sbilife 28th jan 2021 - 860 PE and current margin blocked is about 150k as per your margin calculator. now what will be change in margin requirement on Monday /Tuesday/Wednesday and finally Thursday?

This is what I found on your webpage

Futures and Short Option (Calls & Puts) positions

*** The margin requirement for all stock Futures and options contracts will be increased 2 days prior to expiry (Wednesday and Thursday of the expiry week) to twice of the exchange mandated SPAN + Exposure margin required.**

So can I assume that you will require double of 150k - so should be around 300k 2 days prior means starting Wednesday morning you would require 300k margin?

Also, I believe on Thursday before 2 pm you will need entire contract value even though it is not in the money? (because possibly it can go in the money?) or 300k is enough and remaining value of contract (after 300k) can be transferred on Friday before end of the day?

@ShubhS9 @siva @Nakul @Ragavendran_M

2

Yes your understanding is correct, double the margin required on Wednesday and Thursday for short options and future.
No need to have full contract value on Thursday. You can take the delivery if you have 2 times of span+exposure in your account. You can transfer the amount on Friday also. Interest of 0.05% per day will be charged for the debit balance until you transfer the amount. For more detailed information you can visit https://support.zerodha.com/category/trading-and-markets/margin-leverage-and-product-and-order-types/articles/policy-on-physical-settlement

3

So if I have only double the span+exposure in my account on EOD thursday and don’t have full contract value before eod thursday - that will be 0.05% interest on remaining balance starting from Friday morning?