Margin requirement for short strangle

F&O
1

Kindly provide details for how much amount should I maintain in account during last week of expiry.

Holding the positions till expiry.

Position 1: Naked short strangle

NIfty 50 CMP 16515 on 25-Feb-2022

NIfty 50 Sold 17500 CE 1 lot for premium 134.7 Margin 70, 000
NIfty 50 Sold 15800 PE 1 lot for premium 275.05 Margin 65, 000

Position 2: Hedged short strangle

NIfty 50 CMP 16515 on 25-Mar-2022

NIfty 50 Bought 17900 CE 1 lot for premium 68.1.7 Margin 2, 500
NIfty 50 Sold 17500 CE 1 lot for premium 134.7 Margin 70, 000
NIfty 50 Sold 15800 PE 1 lot for premium 275.05 Margin 65, 000
NIfty 50 Bought 15300 PE 1 lot for premium 147.2 Margin 7, 500

Zerodha Brokerage calculator:

In F&O options column, should I enter premium amount or strike price and spot price to calculate?

Thank you.

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2

You can easily calculate the the margin requirements using Margin Calculator, as well as using Basket order feature on Kite.

As Index F&O are cash settled, there is no requirement for additional margins like Stock F&O closer to expiry.

You need to enter premium amount.

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3

On expiry, if the loss is more than initially paid margin, what will happen?

in this case,

Position 1: Total margin paid: 1, 35, 000

Position 2: Total margin paid: 50, 000

Thank you.

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