If i write a covered call and have the stock held in the demat of Zeroadha, do i get some advantage in terms of the margin that i need to pay for the call position.
since it will be a covered call do i need to put in margin the call goes in the money
Regards
Shekhar
Hey @shekhar007
Irrespective of whether you hold the stock or not when you short options you need to have the required margins (SPAN + Exposure), it will be collected upfront.
You could pledge your shares and write calls on it… the move up in stock should offset m2m loss in case it goes ITM…
Thanks Kshiteesh/Shyam,
So the margin can come from the borrowing against stock - what will be the rate of interest. any other costs
Are there any cost for pledging the shares.
regards
Pledging will be Rs 60 per pledge request. No charges for un-pledging.
Interest will be charged only in case of shortfall. Check out this article to know how it works.