Comment on ZT-Spread Orders

Nithin Kamath commented on 10 Sep 2013, 09:45 AM

Lalith,

To know how ot use the Span calculator, read this blog.

Coming back to your query, when you buy options there is no SPAN margin, you need to bring in the entire value of the option. So when you buy BHEL 135 put at Rs 6 and 145 Call at 7, you need 2000 x 6= 12000 for buying puts and 2000 x 7= 14000 to buy calls.

Span margin comes into play when you write them(sell them). Yes if you write 135 puts and 145 calls together you will get some margin benefit and SPAN calculator will tell you how much exactly.

To write/sell 350 puts on ranbaxy and hold it till expiry, you will need around Rs 30,000.

Cheers,

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