Comment on Basics on Options Shorting/Writing

DM0969 commented on 14 Jan 2014, 09:27 PM

One more ? 5)”Zerodha document Margin – to utilize the entire 70000 collateral benefit you will need to have a minimum cash margin of Rs.70000 ”

Example: If i hold Rs 100000 of Union Bank stock and i collateral it. I get Rs70000/- as collatoral to us. So if i write 1 OTM call option which needs a total approx margin of 35000/- how much cash should i be holding in the account? .. any thumb rule for rough calculation for the amount of cash balance to keep to service the premium?

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