Stock options buying - physical settlement

[ShubhS9]

@samsingh

So how do I calculate this : percentage of applicable margins(VaR + ELM +Adhoc) - 70% on wednesday.

On Wednesday and Thursday of the expiry week 50% of the contract value will be blocked. This also covers the exchange stipulated margins mentioned above.

To know how the calculation works, you can refer to this post:

Why Margin for ITM Option Buying is huge ?

You can check the VAR, ELM and ADHOC margins on NSE website. Refer to this page for SBI stock. SBI’s VAR + ELM + ADHOC margin is 21.6%. So for contract value of 900,000 the applicable margin will be 194,580. On expiry minus 4 days you’ll need 10% of this margin if your Long Option position becomes ITM, so on and so fourth for other days.