Hi,
I have a query regarding F&O ,can we sell PE first and then buy it ?And if yes can this be carried till expiry date?.
Br,
Krishna singh
Yes.
But margin requirements are high for taking overnight positions.
Check this link:
https://zerodha.com/margin-calculator/SPAN/
Thanks for quick reply,
Can you please explain with an example.
Like if I want to sell SBIN NOV 260 PE and buy it later before expiry, is this process feasible ?
Yes you could sell put option and could carry it till expiry. when you sell put option it means you are bullish on stock/index.
Go through https://zerodha.com/z-connect/queries/stock-and-fo-queries/stt-options-nse-bse-mcx-sx to know about STT.
Yes, you can do this. But don’t wait for expiry.
If you really wanna sell it than sell and book your profit and exit early.
u need 10-20 times more margin to sell than to buy. so make sure u know what u r getting into.
So for lot of 3000 ,I will be needing arount 30000-60000m
yes but not always ten times just keep an idea that u will need 30-50k to sell an option. for accurate calculation use this. (https://zerodha.com/margin-calculator/SPAN/)
Margin for SBIN NOV 260 PE is Rs: 1,45,268.
Please don’t sell options without proper knowledge. Theoretically speaking option sell trade can lead to unlimited loss.
Why would you do that? You could call instead. Do you have any theory about how put writing can be better than call buying? If so, can you share it with the community here?