Comment on SPAN Calculator

Nithin Kamath commented on 06 Nov 2013, 08:48 AM

Guess I answered it on our Facebook page as well, the answer once again for other readers:

when you are taking a position like this which is getting hedged, the margin blocked will be lesser only after you take a position and not before that. When you write an option, you will see a premium receivable in the calculator. This gets credited only after you take a position. One of the things that you can try is, write the option using MIS(which will require only 40% of this margin) and then take the long put using product type as NRML. All MIS positions get squared off by 3.20pm, so make sure to convert the short put position from MIS to NRML.

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