Margin N/A for crudeoil put?

General
1

I went to the zerodha margin calculator and selected 4100 PE for jun expiry and wanted to buy this put option , but margin required is N/A…??

ain’t I supposed to be blocking some margin if I’m buying a put ?

2

Don’t you need to have the full money while buying options? Then why does margin come into picture here

3

So what is full value of the put option ? Can’t seem to find that anywhere as well??

4

Anybody there???

5

To buy options one need premium, we use term margin for futures or when writing options, you can check the premium on kite market watch itself, also may be go through this module before trading in options.

6

Thanks a lot

7

Ok. So in kite 4100 PE for June has a rate of 368 , so I’m supposed to pay 368 or 36800 since lot size is 100?

Also, if I bought 5 crudeoil mini lots in futures , can I hedge by buying 5 lots of 4100 PE or since lot size of 100 is fixed in options and options only available for crudeoil , it can’t hedge mini lots with options

I will have to buy 100 futures lots to able to hedge with 1 lot of options?

Sorry I’m really new two options and any help is appreciated

Thanks

8

Ok i figured it …100 lot size for 1 options = 1 crudeoil futures contract…

So I can’t hedge less than 10 mini lots and I need to buy equal amount of options and future lots to create equal qty hedge

Hope I got it right?