I noticed that the additional 2% ELM margin as per new SEBI regulations is getting applied on call and put spreads (both legs are of the same expiry). I thought that this additional margin was only for naked short sellers. Can someone from the team or otherwise advise if this is expected? Where is extreme loss scenario in a spread?
I am doomed 
@Meher_Smaran @VenuMadhav Thanks for the clarification.
Yes, the SEBI circular seems to not distiniguish between short positions of any kind. Spreads and their variants are no where close to gambling. They infact can only increase market efficiency at the least. SEBI is either ignorant or stupid, it is like solving a mosquito problem with a tank
2 Likes
Nice analogy 
At the same time my returns will also tank now🥲
Don’t trade 0 DTEs? 
I trade only 0dte
That sucks, the new rules definitely feel like curbing the 0 DTE madness!
Personally I have nothing against peeps trading 0 DTEs, saw a guy on Tasty’s Rising Star segment who made a lot of money scalping 0 DTEs, should’ve seen the look on Sosnoff’s face (who’s an option seller for context) 
1 Like
So after lot size increases the margin would even increase further right?
@Meher_Smaran
Now the margin has gone up by ~100%
And will reach ~ 200%?
Hi @dtyxg
% wise, it’ll remain the same.
12k additional margin for 25 qty will be 36k once it is 75 qty.
For those traders trading with multiple lots, this won’t make any difference.
Those trading with 1 or 2 lots currently, will be slightly impacted in terms of absolute value. % wise nothing changes
1 Like