Comment on Zerodha F&O margin Calculator

Vin commented on 02 May 2018, 04:08 PM

Hi Nitin,

I have written (sold) 3 calls for IRB Infra for May at 240. I have the following queries:

1. Why is margin so high on writing options as compared to buying/selling futures? In this case, margin involved is 9L approx. While selling future with same quantity involves only 5.5L;

2. How does the mark to market work for written calls (closing price of stock or last traded price for the call)? If the stock movement goes in my favour, do I get credit?

3. Why do I not get a creadit for call sale premium?

4. If the call is illiquid, can I exercise it with the stock exchanges mid series (before the expiry?)

Many thanks.

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