I think for small guys like me, going long is the only option left.
Like result days, elections etc.
Still I am studying about stock markets daily and trying to learn. Let’s see how this goes 
The additional margins for the covered strategy is to cover for exit risk. Say you end up exiting 2 of the 4 positions, the strategy goes for a toss and is exposed to unlimited losses.
Thereotically simple, technically not simple. Exchange doesn’t recognise strategy baskets.
Options writing is not favorable now as theta decay is very less due to volatility and margin makes costly and also risk increased.
OPTION buyers will enjoy now so stay away from option writing specially beginners.
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Not sure I understand the statement “Exchange doesnt recognize strategy baskets?”
Well, brokers do understand what we are doing. That’s why we have a margin calculator in the first place
Else, why would buying one lot of futures in NIFTY naked require 91000 odd and the same reduce to 60k if you have a Call/PE Buy depending upon which strike you choose?
So if exchanges can update their system to recognize the strategies then it will help a lot of us. Instead of doing that they are doing margin increase.
The system is already there and implemented at broker level.
See the three images
Margin required changes based on risk if you are doing futures and covering with options. I am a bit surprised at the 3rd image though!
But with options like IC and butterfly margin required is exponentially high!!
@Umar your argument should hold true incase of futures also, isnt it? I am not arguing. Just trying to understand the rationale behind having 1.5L extra margin amount with the broker when possible loss is only 4-5k. (from my previous reply)
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Today do OPT WRITE
SELL — 10700PE 150qty @ 77.1
SELL — 10600CE 75qty @ 151.45
Don’t wait till EXP book profit earlier.
POSITION PROTECTION LOWER 10547.18 UPPER 10905.65
If we want to take advantage of premium decay , we should sell OTMs…
Selling 10700 ce and 10600 pe is better ( 130 points now)
ITM is better for now gives you long rang protection + higher IV & theta. have look on greek.
I have given this strategy by looking other various things.
Short term trend is going to stop means NIFTY will not fall and also other things.
DISCLAIMER & CAUTION : This are from my calculation not GUARANTEE.
Hey, for the sake of context, it would be better if you stick discussing the question at hand. If it isn’t pertinent, you can either find the right topic or create a new thread.
Sorry, will be more cautious in future.
Thanks
SEBI may relook into latest margin requirements.
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yes they should only make SPAN mandatory like all global exchanges. exposure margin is non-sense. SEBI is a big f*** idiot.
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For a simple Iron Condor in NIFTY margin required is increased even further.
Increased by close to 40,000 INR!!!
@siva Sir is this SEBI mandated? I know there was a increase by upto 20k, but in a week’s time I see you’ve increased it even further!!
We just charge as per exchange mandate, nothing more or less.
This will effect everyone.
just checked in upstox its 135000 …20k difference
Believe, SEBI wants to tight it more. Latest below
It’s better to BAN Derivatives segment till Elections.
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