Comment on Zerodha F&O margin Calculator

Minhazul Islam Sk commented on 19 Nov 2016, 01:19 PM

Say I have sold puts Dec 29, 2016 on SBIN, I got 750 INR. My total margin required : 105120. Strike is 200.

Q1. If stock moves towards 200, the put value will increase. Now, if stock stops at say, 225 on 29th Dec. So, I will get full 750 right?

Q2. What happens if stock ends at 199. That means I have to buy 3000 shares of SBI at 200, but my account does not have that money. So, how much money I loose. Is it the money = diff(put option at that time – the put option value I sold now)?

Q3. If by some glitch, stock drops to 190 overnight for even say one minute, now, If I get exercised, what happens?

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