Covered calls in zerodha

#1

@siva @nithin

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?

#2

Not possible, but you can pledge it and get 50% margin from collateral and other 50% as cash.

#3

ya, thanks

#4

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.

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#5

As of now margin is charged, going further we will look into this.