If I buy a 7800 call at 150 and want to sell a 8000 call at 50, do I get a concession on margin as my maximum risk is defined (100 points)… Should I pay margin for 8000 ce sell and also premium amount for the 7800 ce? Is any option available at zerodha to buy such spreads?
you don’t need to pay for 8000 CE…Bcz you are selling a call option… so, you will receive 50 rs… premium… and it will credited in your account…
and you buy 7800 CE… so, you need to pay 150 rs… premium for that,…
but because you also sell a 8000 CE… and receive premium of that CE… so, your net cost is 100 rs…
First sell the option and then enter into long position. After the two legs are traded the margin blocked will be as shown in span calculator. As selling option will give you premium and margin benefit will be applicable only after entering into second position it is preferred to short first than to initiate long position.
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UPDATE: I checked span calculator and found the margin benefit… My question now is how to get this benefit? Should I simply buy an option and sell different strike or shoudl I do it in a specific order to get the benefit or is there a type of order like mis to get this benefit?
The above calculation for margin requirement is not correct in Indian context.
shiva… bro… can you explain… what is wrong in this… so, that i can edit this wrong answer…
As shorting of options are involved, span and exposure will come in to effect.
Sir now if I short 8000 CE for that margin blocked will be say 30k… Now if I buy 7700 CE at 150 and the margin benefit shown in span calculator is 3000 will that mean my margin blocked is ,30k-3000+10500(75*150)? Or will the margin blocked be 30k - 3000?