Can you do a covered call (owning a share and then selling a call of the same share) without putting up margin for the short position?
Not possible, but you can pledge it and get 50% margin from collateral and other 50% as cash.
If I have lot size number of shares in my demat account and the stock is in compulsory physcial delivery, if I do covered call by selling OTM option, do I need to have up to 80% of contract value as margin one day before expiry?
As this is a covered call and there is no risk for broker, it doesn’t make sense to ask for extra margin.
As of now margin is charged, going further we will look into this.