Comment on Basics on Options Shorting/Writing

Gurmeet commented on 18 Feb 2015, 12:53 PM

Hi Nithin, Thanks for the response.
Let me take an example for a better understanding. This is for my better understanding of the way Zerodha works.

Nifty 8500PE Apr 2015 Expiry – qty 100

Margin requirement in Zerodha: ~64,412.
Margin requirement in ICICI: ~59,500

Now if the Nifty moves towards 8500, lets say it comes down to 8550 in the next few days.

In Zerodha: MToM is applied and an extra margin of 8850 – 8550 = 300*100 = 30,000 will be required.
In ICICI: a trigger price is determined the moment you write this option which is 8450. Extra margin is required only when Nifty moves to 8450 or below that. ie when nifty breaches this trigger price.

Hope my problem statement is clear to you.

Since the written communication always has its limitations, Is there a number where can I reach you.

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