What is the meaning of the amount shown as Delivery margin in my Funds balance in Zerodha account? I hold a 370 buy put in TVS Motors(cmp 406) July expiry. Is it the additional margin for the OTM Put? Can I hold the option till expiry on 30th July or will it attract physical delivery or any penalties?
Delivery Margin is blocked if you have any F&O position due for physical delivery.
If your Option expires OTM, it will expire worthless, in this case you don’t have to fulfill any obligation.
If your Option expires ITM, you are obliged to give delivery of shares. In this case you will need to have shares equal to lot size of TVS in your Demat account, failing to do so will result in short delivery and penalties will be charged accordingly, read this to know more.
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