How much will be interest charged for option strategies as per new rule

General
1

Assume: i have pledged shares which after haircut is giving me 10 lakhs margin. I am not maintaining any cash balance (to begin with)

Pls answer me how much cash margin shortfall will be there for following strategies (consider for simplicity of answering strategies are taken independently one at a time) and associated interest charges

Strategy 1: Sell 2 lots of infosys 1200CE @ 10Rs, Sell 2 Lots 1060PE@ 10Rs

Strategy 2 butterfly: Sell 2 lots of INfosys 1160CE at 30Rs each, buy 1100 CE at 65 and 1220 CE at 8

Strategy 3: Put spread - sell 1160PE@30 and buy 1100PE at 10.

will you consider credit received from shorting options as cash available and thereby offsetting cash margin requirement?

Thanks

Naveen

2

Check the below link to know more about interest charged on shortfall of margins using collateral.

http://tradingqna.com/29334/pledge-stocks-margin-trade-will-interest-charge-calculated?show=29337#a29337

​Collateral cash or even ideally premium received by shorting options should not be used to buy options.

Cash received from shorting options can be used to offset margins.