thanks
How about if the spread max risk is 2K, how much margin would require?
9000Ce sell and 9050ce buy for eg. where max risk is only 2k
@MohammedFaisal: Can you or anyone else with access kindly add margins for stock options [credit spread]?
Example: Sell TataMotors 100 CE, Buy TataMotors 110 CE.
Or Sell Reliance 1500 CE, Buy Reliance 1540 CE.
Thanks. So, margin required to short has come down from 142,000 to 46700 as it is hedged.
Naked short Reliance 1500 CE margin : 142,000.
If we are not allowed to buy an option in zerodha (because of Strike price is outside the allowed range), how will this new framework is going to help? Today, i tried to buy BANKNIFTY Jun 15000 PE and it got rejected. I hope zerodha is working on something to get it resolved
I guess there would be a benefit for ratio spreads too… i.e. buying 1X ATM and selling 3X OTM for example. @siva
Can u give an example?
can you throw some light how does it works. As per my understanding theta will be more for weekly than monthly. In this case loss will be more if market remains sideways for 2-3 days. May be i am wrong.
Please help on this.
Thanks in Advance
YOU SHOULD ONLY USE THIS STRATEGY WHEN INDIA VIX IS LOW(BETWEEN 10-20)
see the Greek in the option chain n look where 30 delta call and put are there-say this is may look into June last week expiry buy them and sell the same strike put n call in next week expiry use sensibull to understand
Thanks a lot. Now i got it.
Dear sir,
Humble request.
Plz post a screenshot of a payoff diagram of the trade you are suggesting. (Even if after seeing payoff diagram, you find some problem in your strategy, still post the diagram) That will give some clarity to others.
In option selling you can gain as much as you have written premium.
Usually weekly premium is less than even 1/4th of the corresponding monthly premium for same strike and deep OTM.
So suppose you write monthly option of 30 Delta for 20 rs, corresponding weekly option will be 2 rs only.
So after a week 20 rs option will be 16 and 2rs will be 0. You earn 2 rs.
More profitable in high vix environment.
After 4 weeks you have gained 20 in monthly and lost 2*4=8 in weeklies.
So net 12 rs profit.
To be done from 45 DTE to 15 DTE.
No sir check theta of the option there is always a premium weekly option has generally they are greater than 1/4
I said early on vix should be low so as there is assumption that vix will increase or stay same this is where magic of calender spread happens as iv increases the longer dated option do not loose that much value but at the same time shorter option loose value due to theta factor
Vix dropped in the current week very heavily you can check
In the 2 week vix did not dropped so it was a profitable trade
Thanks for replying.
You didn’t get a clue even after watching payoff charts! 
I can deduce two things.
One, you have never traded and do not trade what you are telling. You do not practice what you preach. Had you traded what you are saying even once you would have seen a “magic” in your funds (Vanishing trick - old magic)!!
Weekly options deep OTM are never greater than 1/4th of the monthly value.
Pop above 80% but as vix dropped on Tuesday it sanked
This is paper trading n for this specific reason I posted do not trade this strategy when vix is high
In the profitable trade vix did not dropped
Payoff comes like a iron condor,but as vix dropped the middle portion sanked
Hello when will Zerodha release a new calculator considering this change?