why one should go for option strategy ?

I want to know why people go for the strategy which required to buy or sell minimum of two contracts for which we have to pay a huge margin for the limited profit. Although if we put our strategy contracts in Zerodha basket tool before executing it shows very less margin like shown in screenshot below

but this is not true when we swap right to execute the strategy it executes contracts one by one and ask for the margin on individual basis.

Keep buy positions first and then sell positions. Also select “Market” order for buy leg to get executed first then sell leg. This way you won’t require large margin. But beware of liquidity issue for such deep ITM options.

You are using bear call strategy, but why are you going so deep ITM? Any specific reason?

Try ATM or slight OTM.

To place orders in the basket you need to have sufficient ‘required margin’. The final margin is the eventual margin that will be blocked after all the orders are executed. Explained here.

1 Like