Options buying or Options selling
which instrument has consistent income ?
Option selling
Specific reason ?
Insurer or insured?
A combination of both. Doesn’t require additional margin usually, reduces drawdown and gives higher profits.
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Margin reqyuirement for BANKNIFTY is around 1.45 Lacs.
When we Sell options, we get credit & the required margin gets reduced.
But today I tried to Sell 40500CE @ 777, the system asking for more margin (1.65 Lacs +). WHY ?
Rejected
SELL 25 x BANKNIFTY 9th MAR 40500 CE is rejected.
Insufficient funds. Required margin is 165041.21 but available margin is 155092.40. Check the orderbook for open orders.
Add funds
#230308401286544
for how much capital?
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Dear Zerodha, Please reply.
It may be the system’s mistake.
Instead of crediting 19K, it has debited the said amount.
@ShubhS9 Please look in to the matter.
At evening I tried to Sell NG option.
Normal margin requirement is around 1.05L.
When we Sell we get credit & the required margin is less.
But here I saw, the system ask for more than normal margin. HOW ?
The ticket number provided above seems incorrect. Can you recheck and DM the ticket number? Will have it checked.
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Sir, you can check at your end.
When we Sell options, we get credit @ premium & margin gets reduced.
But whenever I tried different segments, the system as “MORE THAN NORMAL MARGIN” !
e.g. Normal margin for BANKNIF is around 1.45 L.
If I sell an option @ 500, I should get credit of 12.5K.
When you sell option, the premium is immediately credited to your account. However, this can only be used for buying options in the same segment on the day you sell option.
You will be able to use it for all other purposes only from T+1 day. Explained here: Can the options premium received be used to open new F&O positions?
Thanks for the clarification.