Margin Requirements and Physical Delivery

Zerodha Zerodha platforms
1

Trade Details:

  1. Buy HDFC Bank Jan Futures at ₹1758.
  2. Buy HDFC Bank Jan 1760 PE (Put Option).

Questions:

  1. How much margin is required at expiry for both positions if I am using Zerodha?
  2. On the expiry day, if HDFC Bank expires at ₹1760:
  • What happens with the physical delivery settlement?
  • Since I am holding the futures contract, do I need to take delivery of the shares?
  • Does buying the put option (PE) affect the need for physical delivery?
    put option in-the-money, will I also need to deliver shares?
    How does Zerodha handle the process for both positions simultaneously?
    Could you clarify these scenarios?

@ShubhS9 @Meher_Smaran

2

Can @Meher_Smaran help me?

3

Hi @deepakjain05

50% of the contract value for both positions.

If the put option expires ITM, the positions will be netted off. If the put option expires OTM, You will have to take delivery for the futures long.

Would request you to check the below article where we have explained the physical delivery process in detail.

Let us know if you have any further queries, we would be glad to be of assistance to you.