Recent issues in placing Option sell orders on Kite

F&O
1

Here’s an issue I’m facing off late (please pay attention, no blanket responses like earlier tickets) -

Day 1 - I enter option sell position (say 50K premium collected)
Day 2 - Withdraw that 50K to bank
Day 3 - 50K in bank and 0 in zerodha funds
.
.
Day N - I want to close current position and move to next expiry. (say, 20K debit for exiting and 50K credit again for entry. So a net credit of 30K)

Earlier, I could execute the 2 trades on Day N without the need of adding funds. But now, as soon as I exit, Zerodha is not allowing me to take any position till I add that 20K. This is an unnecessary precaution as option sell orders anyway bring in cash.

Please continue to allow fresh option sell orders irrespective of negative cash balance as long as margin requirement is satisfied.

2

Checking this, @srinidhi_ravi

3

Divya from Zerodha support had called me regarding this. Can you please tag her as well. I dont know the id.

4

Hi @srinidhi_ravi

For buying back the sold option/ option buying, Going forward, Cash balance shall be required to execute the trade.

Earlier, the transaction was executed from collateral on day N and later on Day N+1, The cash balance was negatively reflected as 20k (as per the example) Till the negative cash balance is not covered, other trades weren’t allowed.

With the current change, the margin requirement process is streamlined in a correct way.