Comment on Basics on Options Shorting/Writing

Siddhant commented on 17 Jun 2016, 12:30 PM

Hi Nitin,
Just trying to get some day trade option writing concepts clear here.
Am looking at Nifty 8200 Puts (at 12:26 today) its at 121.65. I want to short the same now.
What I see when I put these details in the SPAN calculator are:
SPAN margin – Rs: 27,836
Exposure margin – Rs: 18,352
Premium receivable – Rs: 9,461
Total margin – Rs: 46,188
What is the Margin that I need in my account to short 1 option of this 8200 Nifty Put?
Is it ‘Premium receivable – Rs: 9,461’ OR is it Rs 9237 (40% of Rs: 46,188)?

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