Take a scenario,
The total margin blocked by Zerodha is now 1,83,568.
I want to understand the risk for which Zerodha blocks the margin for option call with trigger price higher than the holding future.
In the above scenario, we get Margin benefit of 66,000, whereas I was expecting 0 margin blockage for option covered by the future contract.
boss you buy future , downside is unlimited risk , if tommrow icici bank went down 5% what will happen , its now a days normal icici bank going up and down ,
you write a call then how ts will cover a downside ,
you want icici bank equal qty in demate account on that holding against only you can write calls , not on future
Buy put option you would get benefit
yes but IV will crash in event days put will not go up
But in normal days it would work
see you wan to face lot of thing if you buy option . if the market move little bit also you will loose , every day you tru to keep you will loose THETA will kill option buyer , if you buy the market want to move heavily in one direction
If icici future goes down by 5% then it should be covered by future margin.
Consider at the expiry, icici future was down by 2% then the trader will be in loss for the future and the price of call option will become 0
And if the future rise by 2% then at the expiry, option call price will also become the difference. Which is risk free situation
Then what is the point of blocking margin for option.
@zerodha if i buy any stock future and my e.g 1.7 Lakhs margin gets blocked. Subsequently i buy put option of same stock, will my margin get released immediately or it will be released next day. I am asking this question because i want future order being taken by streak and then i want to take option order manually looking at market price. But i also want margin benefit
You’ll get margin benefit immediately when you take long Option position to hedge your Futures position.