Options Strategies Margin Requirment

[leena.hawal]

Thank u,
But actually Im doing Options Strategies studies & I have difficulty in that about related to Margin Requirement/ Exposures charging on Stratergies.Im explaining my Query as bellow:
EX -:
1] When i'm buying a call option of any stock i have to pay Premium which the price of the Option (if i bought Nifty future's {Nifty lost size is 50 Qty} 4400 call @ Rs.25 as premium i invest Rs.1250,i paid Rs.1250 for buying 4400 call.
And same will happen with Put.

2] In Uncovered Call,When i'm Selling a Call Option of 4400 Nifty future's i will receive the Premium from byer of that call option {@ Rs.75 * 50= 3750 as per premium received}BUT AS WELL AS PER NSE'S REGULATIONS APPROVED BY SEBI (as per my knowledge) I HAVE TO PAY MARGIN FOR STANDING THIS KIND OF SHORT POSITIO/CALL A WRITING (i think for risk purpse).
Means here, Margin Paid on writing Call Rs.27000
(minus) - Primium Received on writing Call Rs.3750
------
Net Investment for Potion is Rs.23250
And same will happen with Put.

3 ] NOW As per in Covered Call when i Buying a stock in future i'm paying the span Margin/Exposur for Buying the particular stock {Buying Nifty Future @ Rs.4450 & its Margin paid Rs.27000 & when writing a 4600 Call option @ Rs.80{80*50 nifty lot size=4000}recived premium Rs.4000 on that potion.
BUT HERE I HAVE NOT TO PAY EXPOSURE ON CALL WRITING BUT ONLY PAY ON NIFTY FUTURES LOT BUYING.
Means here, Margin Paid on Nifty Furute Buying Rs.27000
(minus) - Primium Received on writing Call Rs.3750
--------------------
Net Investment for Potion is Rs.23250

NOW MY QUERY IS :-
Now what will happen/Margin Require to other Option Strategies too
like,
1) Long Combo -
Write Put
Buy Call
2) Protective Call -
Write Stock
Buy Call
3) Covered Put -
Sell Stock
Write Put
4) Short Straddel -
Write Call
Write Put
5) Short Strangle -
Write OTM Put
Write OTM Call
6) Collar -
Buy Stock
Buy Put
7)Bull Call Spread -
Buy Call (ITM)
Write Call (OTM)
8)Bull Put Spread -
Write Put
Buy Put
9)Bear Call Spread -
Write Call (ITM)
Buy Call (OTM)
10)Bear Put Spread -
Buy Put (ITM)
Write Put (OTM)
11)Long Call Butterfly -
Write 2 (ATM) Calls
Buy 1 (ITM) Call
Buy 1(OTM) Call
12) Short Call Butterfly
Buy (ATM) 2 Calls
Write (ITM) 1 Call
Write (OTM) 1 Call
13) Long Call Condore -
Buy (ITM Lower) 1 Call
Write (ITM Middel Lower ) 1 Call
Write (OTM Higher Middel)1 Call
Buy (OTM Higher) Call
14)Short Call Condore -
Sell (ITM Lower)Call
Buy (ITM Middel) Call
Buy (OTM) Higher Middel) Call
Write (Higher Srike) Call
I Hope You Would Understand My Query Sir.

 

[Capricorn]

If your broker charges a single premium on married positions like Covered calls then the same should extend to other call/put spread positions.

Normally in India most brokers charge premium for all short option positions and futures either way. Best to check with your broker.

 

[dinesh delta]

hi , there is a system of span margin by nse . there is a software provided by nse to its member to calculate margin for bunch positions .
if any trader put all his options position at once in the software it will automatically show the used margin ammount.

 

[LOVETHEROVER4]

sir i want to know if i write a icici call at 850,assuming cmp of icici 700 and i have 350 shares of this company.850 call is trading at 25 rupees.what would be the final settelment?
as i assume if icici remains below 850 than i will earn 25 rupees if it exceed the 850 level than i have to sell the shares at 850.
means no loss.
sir if i m wrong than plz correct me and also tell me the margin requirments?
hope for ur early responses