Hi Team and fellow traders,
I have a query regarding how Zerodha calculates “Short option premium” / premium liability in Networth / account value.
I feel it may be getting calculated incorrectly.
Example: If GOLDM 134000 CE is shorted at ₹5,000 premium, and assuming the lot size makes the total premium received ₹50,000, then the liability/exposure should reflect around ₹50,000.
However, in the Total account value / Networth section, it appears the liability is shown as only ₹5,000 (or close to that), which makes me feel the account value may be inflated.
In my case, I have:
1 lot NIFTY CE short at (₹200 × 65)
1 lot GOLDM CE short at (₹9,310 × 1)
So total premium exposure should be well above ₹1,00,000, but the Short option premium shown is only around ₹16,000.
Can you please clarify:
What exactly does Zerodha show under Short option premium in Funds/Networth?
Does the remaining obligation get adjusted in margin requirement / MTM, or is it missing from account value calculations?
Is the premium amount shown per unit or per lot?
Attached screenshot for reference.
Thanks!
