Intraday margin for writing options

Does zerodha provides intraday margin for writing/ shorting options.

Writing stock options & writing index options ?

I am able to see nifty options but hardly any margin given.

I want margin for writing bank nifty options in intraday.

You can trade Banknifty options for intraday using MIS. MIS requires only 40% of the NRML margin, in other words, you get a 2.5x leverage.
So if you want to write a BN option which requires 50k NRML margin, then you require only 20k to trade this position for intraday using MIS.

Note: BO/CO is blocked for BN option trading due to OI violation.

I dont see weekly bank nifty options contracts in MIS , F&O margin calculator on zerodha website.

I only see monthly contracts.

Yes, but you can place MIS trades in BN weekly contracts as well and you will receive the same 2.5x margin.

2.5 X margin for writing index options ?

2.5X is very less. Why cant zerodha provide better leverage. Many brokers provide big margin on options writing also.

2.5x is 40%, sir. MIS requires only 40% of the NRML margin. If you are trading Nifty options, then you can use BO/CO as well which requires only 40% of MIS margin for option shorting but since BO/CO is blocked for BN options, MIS is the best intraday tool you have.

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But still zerodha needs to provide more margin for options writing & including bank nifty as well as stock options too.
Thanks

Well, when it comes to stock options, market orders are restricted so you cannot place BO/CO and for BN options, BO/CO is restricted due to OI violation. So MIS is the best and safest available option for intraday margin trading while writing BN and stock options.

What’s open interest violation while writing options?

OI violation takes place when new option contracts are added at the broker level and is exceeding the 15% limit for BN open contracts per broker. Explained in this link.

Why cant zerodha provide BO/CO in index options writing until 15% total open interest limit breaches out.

Yes, unless the open interest remains below 15% of total market limit then whats the problem?
Zerodha should provide high leverage on options writing & this feature should be provided as first come first serve basis every month & week for monthly & weekly contracts respectively.

Once the 15% limit is breached, they can withdraw the leverage temporarily until the next contract cycle begins.

BO/CO orders are what take the BN OI above 15%. And this has become the case since the introduction of weekly options as they are cheaper to trade compared to monthly options, hence leading to larger qtys of trade. The Risk team has taken this decision after considering all scenarios.
Will keep you posted if there is any advancement in this space.

You can write Nifty options using BO/CO.

Does Zerodha provide Margin leverage for buying f&o contracts as well ?

Futures in itself is a leveraged product. Let’s see how.

BPCL Futures is at 520 and the lot size is 1800. The contract value is 9.36 lacs. But to carry-forward a future position in NRML, you only require an NRML margin of 1.2 lacs. MIS requires 40% of NRML margin, so an intraday MIS position only requires 48k. And BO requires only 40% of MIS margin, so an intraday BO position requires only about 18k.

Use the margin calculator to verify.

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Thanks for your response Srini. I would like to know whether Zerodha or any other brokers provide more leverage via margin for buying Option Contracts. Assume, I would want to buy more option contracts say bank nifty call option/put option. Is that possible.

While buying options you pay an options premium sir, and this is considered a cash trade. It is not a margin trade. Either way, you get 1.4x times margin for buying Nifty options using BO. And this was available for Banknifty options too, but since BN options are blocked in BO due to OI violation, the margin isn’t available anymore.

have you written any options so far or still catching the thing air ?
i would suggest you to write some OTM option and see how things are handled :clap:

Getta life u frustrated loser!! :smile: :rofl:
I m glad I exposed u. Keep crying n looking all my posts. I suggest you to continue searching google to learn about options.
Running after me n following me like my pet dog licking my foot, keep it up. :rofl: :rofl:

lol … keep on entertaining us , you will soon realize your ignorance ( or maynot who knows ) :rofl:
you are a real entertainer for everyone dude … was goign through soem of your posts … lol

anyway i really like your confidence about showing your ignorance here :clap:
you are a laughing stock and except you everyone relizes :rofl:

sorry guys … this clown is irresistable when he posts the stuffs that he dont really have any idea…

Keep it up as long as your ass is fuming :joy:
Still looking for a comeback but failing miserably only to expose your low level standard. :joy_cat:
I lit your ass on fire & u r dancing on my fingertips losing your mental control.

:joy: Keep digging my posts. I m happy to see your mental condition. Search Google to check about M2M. :joy: :joy: