Zerodha,
Why is it that you guys are providing intra-day(MIS) margins for option sellers and not buyers? What trading sense does it make to sell options on an intra-day basis?!?! By the same token, why aren't you providing MIS for buying options?
Please clarify. It is confusing.
Shorting/writing options work similar to futures in terms of risk management and hence the leverage is provided.
So if you short a 7700 call at Rs 100, a margin of around 25k is blocked, and this is as good as futures or in fact better than futures to contain risk.
When you buy the same option at Rs 100, only Rs 5000 is required and assuming we allow you to buy this at say Rs 50, and assuming market is moving around quite a bit, risk management is a lot more tougher.
So shorting 7700 calls require 25k and your real losses start at around 7800, buying 7700 calls require only 5k and real losses start immediately, and hence the leverage for shorting and not buying.