Hello sir I Want to know suppose if sell nifty put option strike price 10000 today at 37 and tomorrow it turns too 67 due to bearish move I pay required additional margin to stay on position on the day of expiry due to time decay the option strike price became rs 10 my querry what would be my selling price wheather 37 or 67
When you are writing what are you selling on expiry day?
Your selling price remains same at 37.
The additional margin for loss in option writing will be taken automatically from your demat account.
If your margin becomes negative due to heavy loss in option writing, then you will receive a message and mail from zerodha that your margin is negative and if you don’t add more margin, your position will be squared off automatically
If the premium comes down, based on your current loss margin blocked will be released automatically. There will not be any change in selling price.
when we write a put option Is there a way to find out additional margins required when the premium increases before the expiry ?
In this case If I sell a put option strike price 10000 today at 37 and the next day if the premium changes to 50, how to find out additional margins required ?
I think they will only block the loss amount in case of options.
If put option price increases, it means nifty is down. Span and exposure margin should decrease but i am not sure about the exact amount.
We can use Zerodha margin calculator to know the exact margin required
https://zerodha.com/margin-calculator/SPAN/