Option settlement

[ShubhS9]

@ndal

if I write an ITM call option of SBIN at 200 Strike price and buy an ITM call at 202.5, is still I have to manage twice the margin ??

Have explained here, how margin reporting will work for hedged positions

Hedging and physical settlement

This is how it works on last two days of Expiry Week. Eg. You hold Short ITM 1800 Call and Long OTM 1880 Call of Reliance, current margin requirements for Shorting 1800CE are 271k and after buying 1880CE it comes down to 70k giving you margin benefit of 200k. On last two days of Expiry Week, margin requirement for ITM 1800CE will be twice of 271k ie. 542k, after factoring in 200k margin benefit you get for holding OTM 1880CE your margin requirement will be 542k - 200k = 342k. The calculatio…