Why Put Option writing required more margin than Call Option?

General
1

Margin required for writing nifty put option is seen as higher than call option. Why is it so?

2

Panic spreads faster than greed, meaning the rate at which the Put option moves can be faster than the rate at which call option moves.

Hence from a risk perspective it is way more risker to write Put options than Call options. For this reason RMS demands a higher margin for Put options.

I’m certain there is a mathematical explanation for this, trying to get hold of it…will post it here the moment I do.

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3

thanks…