I assume margin required for weekly option contracts should be lesser than monthly ones.
Can you pls revert back with margin requirement for Call or Put for Banknifty ? Zerodha span margin calculator doesn’t seem to support weekly ones as yet.
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Margins for shorting weekly options are comparatively little less to monthly contracts but not significantly. For time being you can consider same margins as of monthly. If you want to know exact value then you can place limit orders and check by yourself.
Hi Siva,
Can you please explain this? Does this mean Zerodha is working on this; can we expect some changes in Margin calculations sooner or later?
Please also clarify below point.
- Why Zerodha is asking for same margin (as of 1st day of month/expiry) even on the last/expiry day also? Does it not check the Remaining Time for Expiry and Delta?
Thanks.
Hi,
Exchange mechanism of calculating margin on Options is (strike price + premium * quantity * 12%).
It works the same for all series options. Ideally, if you’re shorting weekly / monthly, option margins will almost be the same or there will be a slight variation in margins because of premium difference.
We just charge what is required as per exchange, exchange span should take care of volatility, span is a measure which cover max loss for 1 day with a probability of 99.5%, so if underlying price and volatility remain same then same span is charged irrespective of day1 or day 30.
Understood the point. Thanks for the reply.
Hi @siva do I have to keep free cash in account to write options or is there any other option like, liquid mutual fund/ fd/ or stocks.If yes then Is there any charges for that?
Like if I have to short otm nifty options, I need around 1.8 lakh in my account, so this 1.8 should be free cash or i can use liquid fund as collateral?
Will be applicable to liquidbees also.
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Oks thanks for reply👍