Comment on Zerodha F&O margin Calculator

Shobha commented on 22 May 2014, 05:55 PM

Hi ,
If I write in deep Out of Money Options, margin requirement is huge. unlike for In the Money option
Say, NIFTY Spot at 7000.
Days to Expiry = 10

I Sell PUT 1 Lot of Strike Price 6500 at 10Rs premium each. Margin is ~22,000 – 500 = Rs.21,500

Now Lets say I make another trade,
I Sell CALL 1 Lot of Strike Price 7500 at 10Rs premium each.It needs additional Margin of Rs. 21,500

Making total margin of 43,000 for trades. Its getting simple summed up. Shouldn’t it take into account that Targets are pretty far and account for days left and Volatility.

There should be some facility for margins of deep out of money trades.

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