Currently we hold 800 shares of IndusInd Bank, we would like to place the sell call, Zerodha is still asking for the margin requirement, I think it’s stupid since I already hold the stock, there should not be any margin requirement.
This is how it works. Even if you hold underlying shares you still need adequate margins to take Short position as it is considered as seperate position.
What you can do is, pledge your shares and use the collateral you recieve to fund your Short position. Do keep in mind though, for overnight positions as per exchange requirement 50% margin should compulsory come in cash and remaining 50% from collateral.