Margin money required to buy ITM put option shorted

Hi all,

I have shorted ITC 185 PE of the september series at Rs.2. The lot size is 3200. Now ITC shares trading almost at 175. Please guide me, when should i deposit the whole money of 3200*185 (Rs 6 Lakhs nearly)into my zerodha account, to take the delivery of the shares.? Till now, i haven’t received any margin shortage mail from zerodha. 24th sep. is the expiry and right now i’m maintaining only 2 lakh margin in the zerodha account for this. Please guide asap, so that I can take the delivery of the stock, without squaring off the contract, if the stock trade below 185 by end of expiry.

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The margin requirment for Short positions rise on Wednesday and Thursday of the expiry week, so if you want to take delivery do make sure you add funds today only.

HI, Thank you for the quick response. Is there anything goes wrong if i deposit the same latest by tomorow.??

You can add funds in the morning as well. When market opens your margin requirement to hold Short position would’ve increased to twice of current requirement, so if there is shortfall the RMS can square-off your position. To avoid this, the sooner you add the funds the better.

Thank you.

the RMC will sqaure off the position at 3.20 PM on the day as far as my knowledge is concerned. So, before that funds needs to be in the account, right? or anything needs to do. Please correct me, if i’m wrong.

If there is margin shortfall, it’s up to the RMS when they will square-off the position, if there isn’t liquidity or too much volatility they might not even be able square-off, so the onus is on you to make sure there are adequate funds in your account to hold the position.

I have deployed full 6 lakhs into the zerodha account on 23 sep, which is sufficient for taking the delivery. But margin amount used for 2 days is around 3 lakhs only, 3 lakhs showing as margin available. why zerodha has not bloced my full amount as margin? Also, the amount which is showing as margin available, zerodha will give the interest on that amount?? Since, if debit in account zerodha imposing penalty, if any excess amount is there, zerodha is giving interest on that? If yes, what is the rate of interest.

Your Short 185 Put expired ITM, which will result in you taking delivery of underlying shares, you need to have 592,000 (Strike Price * Lot Size * Number of Lots) in your account to fund this transaction, now the blocked margin + funds in your account will be used to pay for your physical settlement obligation.

There is no interest paid on amount that is in your account.


Amount is shown debited in my account. But, I am not able to see the shares in my account? Even, purchased today like that also it’s not showing?

These shares will show in your holdings only after settlement is done, the settlement takes two working days.

Hi, I got the 3200 shares into my account. But it is showing error for updating the price and the purchase data. Back end I’m trying to add the purchase value and the date, but it is showing as “Discrepant”. What to do?