Regarding margin requirements for long options nearing expiry

F&O
1

I just wanted to know how exactly are the additional margins charged for long option positions nearing expiry. In this article -

https://support.zerodha.com/category/trading-and-markets/margin-leverage-and-product-and-order-types/articles/policy-on-physical-settlement

It says that 50% of contract value is charged by Zerodha on Wednesday and Thursday rather than the way the exchange prescribes it.

I just wanted to know if this still holds true or not cause things have changed around a lot lately.

2

These margins are applicable only on Long ITM Options and are collected in phased manner from expiry minus 4 days.

It is still the same, for Long ITM Options, 50% of contract value is blocked on last two days of expiry.

3

currently nrml margin for selling 30000call is 141k…mis is 34k and cover order is 18k? how is this possible if u r providing 24% in mis and 18% in cover order? @ShubhS9

4

@Avi_Garg was asking about Physical Delivery margins which are applicable for Stock Options during Expiry Week as those are physically settled, Index Options are cash settled there is no additional margin requirement for Index F&O.

5

no i was just asking about the calculation…24 % perc of 141k is 34k but 18 % is not 18k…