I think common sense has been sacrificed for perceived simplicity and conveniences of the bosses. Not talking of Zerodha in particular…
Or maybe the big bosses dont want to fire up F&O speculation more than it is now. .
is the selling cover call option still, required margin till today?
I am asking the same question u been asking like in US market if the option seller have the share then he can sale cover option on that. how’s it work in india
Suppose to avoid physical settlement, I square off the call option , then unpledge the shares and sell the shares (in that order), will there be any margin call for cash? How is the loss against this square off adjusted if i have used 100% collateral margin? (thereby paying interest)
If your squaring-off your option position, there is no need of margins. Also, you don’t need any funds in your account to sell shares from holdings.
The P&L:
For Options position: The difference between your selling price and buying price will be the P&L.
For the shares which you are selling from holdings: The difference between your buying price and selling price will be the P&L.