Margin utilization exceed 100.10%

F&O
1

dear sir

i was trading today with low capital and suddenly i got message from zerodha " margin utilization exceeded" and it was asking me to add funds.

i have purchased call option of bank nifty at 200 (1 lot) = 5000 but my account has only 6000. and earlier in morning i have traded in nifty and had made loss of 200 rupees…

i understand it was a buy option (call or put) and i can only place order if i have sufficient funds. has the rules changed for options as well?

can you please elaborate what could the possible reason for msg from server.
after that i immediately exited all my positions.

sir one more query i would like to ask.
with my little knowledge i understand that if we hold any option till expiry we must have sufficient margin in account to take delivery.

can you please do the calculation for the below options for both cash and compulsary delivery one.

  1. consider example
    18th march and i hold bank nifty 33500pe till expiry and (purchased 33500 @ 550 price (550*25=13750, and 33500pe closed at 1250 at 3:30 pm and now considering my account balance only 16000 rupess at morning) plz can you calculate the above values and tell me how it is settled?

  2. example .

today 19th march i purchased cipla 780 ce and hold it till march 25. and on 25th cipla closed at 800…

can you please do this calculation? how much money should i have in my account as on 25th march. to take the delivery

thank you

2

You get margin call alert when your margin utilisation exceeds certain threshold. Explained here.

Index Options (Nifty, Bank Nifty, FINNIFTY) are cash settled, OTM Options will expire worthless and ITM Options will be settled at intrinsic value, and upon expiry any profit or loss you will be making will be credited to / debited from your account.

If your 780 CE expires ITM, as an Option buyer, you’ll have to take delivery of the underlying shares.

You’ll need amount equal to Strike Price * Lot Size * Number of Lots in your account. That will be 10,14,000 (780 * 1300 * 1). You can learn more about physical settlement here.