Hi Guys
Please address my basic queries regarding cash secured put.
If I sell RIL 2000 PE at 30, for which margin requirement is below 1.5 lakhs, if by the end of the month’s expiry RIL’s price falls below 2000 and I want to take delivery what should be my approach, should I square off my PE first and then buy from the market OR let the contract expire ITM to get the shares considering the government taxes and other charges?
I lot would approximately cost around Rs. 10 lakhs, if suppose 2 lakhs I have in the form of LIQUIDBEES collateral and other 8 lakhs cash, in that case if the contract expires ITM, will zerodha automatically sell my LIQUIDBEES collateral and take away 8lakhs from the account to deliver 1 lot of RIL or before expiry they will square off my option contract stating insufficient money for delivery of shares?