Comment on Z5- Getting Started

Milan commented on 10 Sep 2015, 09:49 AM

Good Morning Nithin Bhai,
i have some doubt about margin required for option writing.

suppose i’m writing option of Nifty 8600 CE @ 2.80 ….. SEP 15 .. Qty : 200

as per zerodha span calculator.

SPAN margin
Rs: 47,750
Exposure margin
Rs: 46,232
Premium receivable ?
Rs: 750
Total margin ?
Rs: 93,982

suppose market moves against me and option value goes very higher … say

from 2.80 to 280. still i need 200 * 280 = 56000 only margin.

then why zerodha calc showing 93,982 ?

and if my account does not have 93982, then can i write this option ?
until i have margin required by current market, and if my margin is not enough then zerodha square-off my position.
am i right ?

Thanks.

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