How do I get margin benefit for Nifty covered calls? I’m holding Nifty Bees and planning to sell nifty call options
No. That isn’t possible unfortunately. You can pledge NiftyBees and get additional margin, but that will not reduce margin required for the call.
You can pledge your bees and get the required margin. But there is some proportion of margin that can be used in option selling. check the details with zerodha.
if i pledge the bees, will it be a covered call?
I think I’ll have to unpledge it before selling
A video on Vivek Bajaj Youtube channel where he with Nitish Kumar of NK stockTalk has explained this clearly. You may see that video.
- Facility to sell pledged stocks: This is a feature we’re working on making available, allowing you to sell pledged stocks without having to request for unpledge and wait until they are received to your demat account. With the new pledge system it becomes much easier to deploy this. This covers the risk from market movements in the stocks you’ve pledged.
Is this feature live yet?