Comment on SPAN Calculator

Payoj Jain commented on 06 Apr 2018, 03:28 PM

Dear Zerodha Team,
Love your work and efforts.

I am trying to go long on Nifty via a Synthetic Future using long dated options.

Here are the facts on April 6th, 2018 around 3:15 PM:
1. Nifty is currently at around 10,300
2. For June Contract the price of 10,300 are Call: 339.4 & Put: 224.2
3. When checking Margin required for shorting June Put it shows – Span: 40,819, Exposure margin: 23,257, Premium receivable: 17,494 & Total margin: 64,076
4. When adding Long June Call to it shows – Span: 16,484, Exposure margin: 23,242 & Total margin: 39,725
5. When checking Margin required for going long on June Fut it shows – Span: 39,279, Exposure margin: 39,019 & Total margin: 78,298
6. For December Contract the price of 10,500 are Call: 546.3 & Put: 440.6
7. I am not able to find December Contracts in the SPAN Calculator

Here are the Questions:
— If I understand it correctly the Total Margin in case of shorting the put option is not taking into account the premium receivable. Thus is it to be reduced if I need to estimate the funds needed in the account to only short the Put option?
— The margin required for Synthetic Future (Sell Put & Buy Call) does not show any head for Premium. Thus is 39,725 the final and only funds needed to be kept in the account to be able to go long using a Synthetic Future, and no additional funds needed for any premium?
— If this is correct than please confirm the fact that: going long using a synthetic future is much easier on the fund requirement as opposed to the normal June future ( 39,725 vs 78,298)!
— How to estimate the margin required to replicate this position in case of a December based Synthetic Future ?

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