Comment on Basics on Options Shorting/Writing

coolblr commented on 28 Feb 2014, 10:00 AM

@Nithin, went through some of your posts here on giving stocks, MF or ETF’s as collateral for the margin for derivative positions, I have some questions:

1. These collateral MF’s (I think I saw the list also somewhere on your website) have to be in the demat account that I have with Zerodha?
2. When I have lets say MF as collateral, I will not be able to sell the MF’s only when I have positions in derivatives against it or irrespective of I have positions or not I will have to let you know guys then only I can sell them?
3. The reason I got interested is I have some money lying in debt/liquid funds, which I can use it as collateral against my options positions (usually I sell options, but not since 1-2 months as the IV’s are in the gutter and premiums are bad, so rather buying it lately). I have these MF’s with a third party reseller, I think I can either transfer the MF’s or sell there and buy here again. If I buy MF’s here again, I have to buy it on the terminal or how does it work? Also, lets say I do not have any positions and I want to exit out of these MF’s how do I do it?

Cheers!

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